On Thursday 25 March, Nationwide Building Society will be cutting the rate on its Green Additional Borrowing by up to 1.80%, to its lowest ever further advance rate, as it continues its drive to encourage people to make their homes greener, more sustainable and fit for purpose.
This latest rate reduction means that Green Additional Borrowing will be available at 0.75%1 for loans of between £5,000 and £25,000 up to a maximum of 85% LTV, all of which come with no product fee. The new rate will be the same regardless of what LTV level the borrowing is at.
As a result, the higher the LTV, the bigger the rate cut. The rate reductions are:
- At 60% LTV, rate reduced by 0.40% from 1.15% to 0.75%
- At 75% LTV, rate down by 0.70% from 1.45% to 0.75%
- At 80% LTV, rate reduced by 1.25% from 2.00% to 0.75%
- At 85% LTV, rate down by 1.80% from 2.55% to 0.75%
The loans are only available to existing Nationwide mortgage members2 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 rates3. 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 points4.
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.
Amy Brierley from Bolton, Lancashire has previously taken out Nationwide’s Green Additional Borrowing. She and her husband borrowed £25,000 to improve the energy efficiency of their home by installing a new warm, insulated orangery roof. There were two roof lanterns installed with a cold bridging system, along with new sliding doors with 28mm argon glazing. A new composite front door was also installed to help reduce drafts.
Amy said: “We wanted to make our home more energy efficient as our orangery wasn’t being used due to insufficient insulation. It was very expensive to heat in the winter, and we were advised that a warm roof would make all the difference, which it has! In terms of the green additional borrowing, the process was fairly straightforward, the rate was fantastic and our mortgage advisor was really helpful and efficient too. We were really pleased with the service from Nationwide and it is great to know our home is more energy efficient.”
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.
“It’s great to see members like Amy and her husband benefit from our Green Additional Borrowing to make improvements to their home. 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.”