The loans are only available to existing Nationwide mortgage members looking to borrow more
Nationwide Building Society is cutting the rate on its Green Additional Borrowing by up to 1.80%, to its lowest ever further advance rate.
This latest rate reduction means that Green Additional Borrowing will be available at 0.75% for loans of between £5,000 and £25,000 up to a maximum of 85% LTV, with no product fee.
The new rate will be the same regardless of what LTV level the borrowing is at and as a result, the higher the LTV, the bigger the rate cut.
The loans are only available to existing Nationwide mortgage members who are looking to borrow more, and the new rate means that Green Additional Borrowing is up to 2.24% cheaper than the Society’s equivalent fixed further advance rates. At least half of the loan must be used to fund a range of sustainable home improvements, including the addition of solar panels, air source heat pumps and electric car charging points.
Recognising that borrowers may look for products like this through brokers, Nationwide will be extending its Green Additional Borrowing through mortgage brokers in the coming weeks with rates the same as those available direct.
Henry Jordan, Nationwide’s director of mortgages, said: We know more needs to be done to help people green their homes, especially as buildings are the second largest source of emissions in the UK.
We hope by making significant cuts to the rate on Green Additional Borrowing, we are giving our members real impetus to make their existing homes greener, while ensuring we continue to play our part in tackling climate change, Jordan said.
He said: With our green product offering our lowest ever further advance rate, we hope to see even more members look to benefit and make their homes more energy efficient in the coming year and beyond. We also realise that some members may look at their options via intermediaries, which is why we will start offering our Green Additional Borrowing to brokers in the coming weeks.