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The Grass is Greener with Barclays Mortgages

  • Barclays Green Home Mortgage to provide discounted interest rate for homebuyers choosing a 2 and 5-year fixed rate on mortgages up to 90 per cent loan-to-value (LTV), and Help To Buy mortgages up to 75 per cent LTV.

  • Mortgage savings of up to £750 on a typical mortgage of £150,000 over the five-year fixed rate term

  • Reduced energy bills will result in potential savings of up to £585 a year on a typical three bed property

  • Over 80 per cent of new build properties completed in 2017 achieved an A or B EPC Energy Efficiency Rating  

In a UK Retail Banking first, Barclays Mortgages has announced the launch of the Barclays Green Home Mortgage, available to customers from next week.  The Barclays Green Home Mortgage will reward homebuyers who choose to buy an energy efficient new build home with lower interest rates on their mortgage and responds directly to the Government’s Green Finance Taskforce recommendation to support Clean Growth in the mortgage market. 

The Barclays Green Home Mortgage will be available to anyone that purchases an A or B EPC Energy Efficiency Rated new build home from an initial group of five Barclays partner house builders, with plans to partner with all major UK house builders by the end of year. 

Barclays partner house builders

  • Barratt Homes

  • Berkeley Group

  • Countryside Properties

  • Crest Nicholson

  • Redrow Homes

Following the success of the recent €500m Barclays Green Bond, which was the first to be issued by a UK bank and backed solely by UK assets, Barclays Mortgages will offer the preferential interest rates on 2 and 5-year fixed rate mortgages up to 90 per cent loan-to-value (LTV) and Help To Buy mortgages up to 75 per cent LTV.  With 10 basis points discounts off the equivalent traditional Barclays Mortgage products, home movers purchasing a new build property could achieve a saving of £750 on a typical mortgage of £150,000 over the five-year fixed rate term.  Combined with the reduced energy bills an energy efficient new build home can provide, savings of up to £1,335 could be reached.

 

Initially available to customers buying new-build properties from selected partner house-builder, Barclays Green Home Mortgage suite will be expanded to additional house-builders and homebuying scenarios during 2018, so that more customers can benefit from this innovative green mortgage.

 

Hannah Bernard, Head of Barclays Mortgages, said: “We are increasingly hearing from our mortgage customers that they’re interested in purchasing an energy efficient home. Given Barclays commitment to supporting our customers’ transition to a low-carbon and sustainable lifestyle, we have compelling reasons to launch this pioneering product. We’re looking forward to expanding our offer to more customers and through more house-builders later this year.

 

“We’re proud to be the first major UK mortgage lender to offer a product that helps home buyers in their decision to purchase a Green new-build home. On top of this, we are committed to expanding the Barclays Green Home Mortgage suite so that it is available to a wide range of customers and property types by 2019.”

 

Energy and Clean Growth Minister Claire Perry said: “As part of our Clean Growth Strategy, the Government is committed to supporting the development of green mortgage products, and enhancing our reputation as a world-leading green finance sector.

 

“As well as the prospect of an exciting new energy efficient home for consumers, the launch of Barclays Green Home Mortgage, a major UK financial institution, is exactly the kind of progress I want to see more of as we consider the recommendations of the Government commissioned Green Finance Taskforce.”

 

Carbon Trust Chief Executive Tom Delay CBE comments: “It is great to see new approaches being pioneered to reward homeowners for choosing to live in highly energy efficient homes. As well as a lower mortgage rate from Barclays, there are huge benefits to be gained from improved energy efficiency, both for individual households and on a national level.

 

“Efficient properties are often nicer places to live – warmer in winter, cooler in summer, and cheaper to run. Looking at the bigger picture, reducing overall energy demand is also an important part of the UK’s action on climate change, making it easier to keep the lights on, taking the strain off national gas supplies, and ultimately reducing the cost of the transition to a low carbon economy.”

 

Rhian-Mari Thomas, Chair of Barclays Green Banking Council and member of the Government’s Green Finance Taskforce, explains: “Barclays Green Home Mortgage is a truly innovative product, conceived and realised thanks to the collective efforts and shared vision of Barclays Green Banking Council. Working collaboratively across Barclays, our Council is pioneering the creation and delivery of successful market-leading green products, services and partnerships, as we strive to ensure the full spectrum of valued customers and clients can benefit from our Green finance solutions. I’m incredibly proud to be a part of this”.

For further information on Barclays Green Home Mortgage visit https://www.barclays.co.uk/mortgages/green-home-mortgage

House hunters can download the Barclays Homeowner app to find a dream home, calculate borrowing and for direct access to estate agents and mortgage specialists

Notes to editors

  1. Research from the Carbon Trust shows that owners of a typical 2 bed property with a B rating for energy performance will have far lower energy bills than those with a similar E rated property, saving around £570 a year. On 3-bedroom properties the annual savings would be around £585.

  2. Circa 82.3 per cent (121,210) of 147,278 new build properties completed in 2017 had A and B EPC Energy Efficiency Rating – source: Number of New Dwelling Energy Performance Certificates lodged on the Register in England & Wales by Local Authority and Energy Efficiency Rating - in each Year/Quarter to 30/09/2017

  3. The launch of the Barclays Green Home Mortgage builds upon Barclays recent successes in the “green finance” space, for example:

    1. In December 2018 we launched to corporate clients a range of dedicated loans, deposits, asset finance and innovation finance to support green investment
    2. In November 2017 we launched a €500m Green Bond, the first to be issued by a UK bank and backed solely by UK assets

    3. 2014 Barclays announced we would invest a minimum of £1bn by November 2015 to form part of our liquid asset buffer.  In November 2015 Barclays' Treasury department confirmed it had reached this target and made a second commitment to invest a further £1bn.

Green Finance Taskforce report - https://www.gov.uk/government/publications/accelerating-green-finance-green-finance-taskforce-report

How does a home achieve the A or B EPC Energy Efficiency Rating

Certificate outlines the property: energy efficiency rating, Environmental Impact CO2 rating, Estimated energy use, carbon dioxide (CO2) emissions and fuel costs of this home, Summary of your home’s energy performance related features, Recommended measures to improve your home’s energy performance.

An Energy Performance Certificate (EPC) shows the energy current and potential energy rating of a property, known as a ‘SAP rating’. A ‘SAP’ rating stands for Standard Assessment Procedure and is the governments recommended system for producing a home energy rating. The SAP charts have been divided into 7 bands ranging from A-G. Each range has a set amount of ‘SAP’ points. Each chart has a current and a potential energy rating out of a maximum of 100 points (being maximum efficiency).

Estimates from Energy Key suggest the following:

 

Improvement

Rating can be improved by

Estimated Savings

Condensing Boiler

47 SAP points

£225+ per year

Cavity Insulation

13 SAP points

£100-£125 per year

Roof Insulation

10 SAP points

£100-£125 per year

Cylinder Stat and Insulation

8 SAP points

£100-£125 per year

Double Glazing

4 SAP points

£10-£15 per year

Low Energy Lighting

2 SAP points

£10-£15 per year

 

About Barclays

Barclays is a transatlantic consumer and wholesale bank offering products and services across personal, corporate and investment banking, credit cards and wealth management, with a strong presence in our two home markets of the UK and the US.

With over 325 years of history and expertise in banking, Barclays operates in over 40 countries and employs approximately 80,000 people. Barclays moves, lends, invests and protects money for customers and clients worldwide.

For further information about Barclays, please visit our website www.home.barclays .