The product is eligible for purchase and remortgage property with an Energy Performance Certificate (EPC) rating between A and C, and is part of the lender’s F1 and F2 ranges.
The F1 range is described as Foundation’s “most competitive rates” for clients who fall outside of mainstream criteria due to complex income types, specialist property or a low credit score. The lender’s F2 range targets customers with credit blips in the preceding 24 months.
The products are available up to 85 per cent loan to value (LTV) and the discounted options start from 2.99 per cent in the F1 tier, and 3.24 per cent in the F2 tier. The discount options have no early repayment charges.
Fixed rate options start from 3.84 per cent in the F1 tier, and 4.09 per cent in the F2 range. They are available on capital and interest repayment basis and come with a free standard valuation and reduced product fees of £595 for fixed rates, and £1,295 for discounted products.
Foundation said the new products, especially in the F2 tier, broadened the availability of its green offerings, initially introduced in 2021 for landlords and owner-occupiers, and cut upfront costs.
George Gee (pictured), commercial director at Foundation Home Loans, said that green mortgages for its residential owner-occupiers were a “key part” of its offering.
He said: “This is the first time we have offered a discount product within the ‘Green ABC+’ range and it is also the first time we have broadened the availability out to F2 borrowers, meaning more potential homeowners can secure mortgage rate benefits as a result of purchasing an energy-efficient property or having improved the EPC level of their existing property.
“Our aim with these products is to incentivise and reward borrowers to help improve the overall energy ratings of the UK’s property stock and provide a range of mortgages which promote far greater efficiency in this highly important area.”
Lenders have been creating more residential and buy-to-let green mortgage products due to increased awareness from COP26 and upcoming regulation around EPC requirements. Brokers have suggested that government intervention and increased education is needed to increase product traction.
