The Energy Efficient Homes Cashback mortgage will offer borrowers £500 cashback for purchasing or remortgaging to HSBC with a home that has an EPC rating of A or B.
This is only available through a broker from 27 March.
The cashback will be added to any other incentive the borrower’s chosen product offers, meaning first-time buyers could get cashback of up to £1,500.
Rates start at 4.28% at 60% loan to value (LTV) for a five-year fixed deal with a £999 fee. This is the same as HSBC’s standard range.
Oli O’Donoghue, HSBC UK’s head of mortgages, said: “An EPC provides important information to consider when buying a home, making it easy to see at a glance which homes are the most energy efficient and what work needs to be done to improve the home’s energy efficiency.
“There are tangible financial benefits to choosing an energy-efficient home, including significantly reduced energy bills over the short, medium and longer term versus homes at the lower end of the EPC scale. At a time when the cost of living continues to escalate, buying a more energy-efficient home can potentially help save money and build or reinforce the financial resilience of the homeowner.
“With environmental consciousness on the rise, our new Energy Efficient Home Cashback mortgage will promote more sustainable choices around homeownership and reward customers who wish to purchase an energy-efficient home or have one and choose to stay in it and remortgage to HSBC UK at the end of their current fixed rate deal ending.”
Mortgage rate changes
Elsewhere, HSBC has adjusted its mortgage rates with both increases and decreases.
Select rates at higher-LTV bands of 90% or 95% will be reduced across two-, three- and five-year fixes for borrowers who are switching, purchasing or moving home.
Rates have been increased across lower LTVs in the corresponding ranges.
HSBC has increased residential remortgage, remortgage cashback, international residential and select buy-to-let (BTL) switching, borrowing more, purchase and remortgage rates.
