The move comes after the mutual unveiled additional borrowing in spring, which allowed people to borrow more on their existing mortgages.
Now, borrowers will be able to borrow more against their existing mortgage to spend on improvements that have energy efficiency in mind.
This latest update is open to both residential and landlord deals, and it will not only help to support energy-efficiency changes but also improve homes’ Energy Performance Certificate (EPC) ratings.
Leeds Building Society said the energy-efficiency improvements can include the replacement of traditional insulation, the installation of double or triple glazing, boiler upgrades, the addition of air source heat pumps, solar panel installation, and the addition of electric vehicle (EV) charging points.
All of the products within the deal have no fees and come with a free standard valuation. They include a residential two-year fixed rate at 4.19% up to 75% loan to value (LTV), a residential two-year fix at 4.69% up to 90% LTV, and a buy-to-let (BTL) two-year fixed rate priced at 5.19% up to 75% LTV.
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The mutual noted that tapered early repayment charges (ERCs) of 1.5% or 2.5% apply.
Martese Carton, the mutual’s director of mortgage distribution, said: “Borrowers are becoming increasingly aware of the need to take control of their energy consumption and the environmental impact of their home.
“The UK has some of the oldest housing stock in Europe, meaning Britain’s homes remain among the least energy efficient. With changes on the horizon, we are expecting to see more requirements on energy efficiency, which could impact landlords in particular.”
She continued: “To improve a home’s EPC rating from a D to a C, the average estimated cost ranges from £6,800 to £12,000 and we believe that green additional borrowing provides a solution to our mortgage holders who are planning to improve the energy efficiency [of] their homes.”
Chloe Timperley, green mortgage campaign lead at the Green Finance Institute (GFI), added: “The GFI welcomes this valuable new addition to the market from Leeds Building Society. The green additional borrowing product aligns with our Green Home Finance Principles and provides subsidised finance for energy-efficient home upgrades – actively supporting customers who live in colder, draughtier homes with higher running costs to make improvements.
“This new product also supports the GFI’s Built Environment Programme mission to expand access to green home finance solutions, such as green mortgages, to make warm, affordable, healthy and low-carbon homes accessible to everyone.”
