Co-operative Bank advances green mortgage

Tuesday, 20 November 2007 12:00

The Co-operative Bank is to introduce new features to its green tracker mortgage.

The mortgage will reward customers who try to reduce their carbon footprint by offering a reduced rate of borrowing for green home improvements, such as insulation, high energy-rated boilers, solar panels or ground source heat pumps.

The mortgage itself tracks at 0.04 per cent above the Bank of England base rate for the first two years of the deal, and then is at 0.49 per cent of the base rate for the remainder of the term.

John Barker, head of mortgages at the Co-operative Bank, said: "As combating climate change is a key feature of our ethical policy and of growing interest to our customers, it is important we continue to meet customers' expectations and needs through the development and enhancement of our green mortgages."

Paul King, chief executive of the UK Green Building Council, added: "Homes are responsible for over a quarter of our CO2 emissions, so if we're going to tackle climate change we have to start at home.

"Schemes such as this, which make energy efficiency improvements easier and more affordable, are vital if we are to get to grips with the UK's energy-hungry and carbon-intensive housing stock. And ultimately, reducing energy not only helps save the planet, it also helps save the home-owner money."

Exit fees on the mortgage stand at £140 and the application fee is at £95. Early repayment charges or three per cent stand for the first two years.

The deal is also portable and has flexible overpayment/underpayment features.

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