Yorkshire mortgage go green

Riding on a wave of green concern, the Yorkshire Building Society has unveiled an eco-friendly mortgage.

The Home Energy Efficiency Additional loan, which is available at a discounted rate, is dependent on the extra funds being put towards home improvements that will increase the energy efficiency of the property.

Offering a discount of 1.50 per cent on the Yorkshire Standard Variable Rate of 7.15 per cent, the additional loan rate remains fixed for five years and is available to people who want to borrow between £1,000 and £15,000 on top of their mortgage.

However, the additional funds must be spent on improvements that will make the house more energy efficient.

Rob Prior, Yorkshire Building Society product manager for mortgages, said homeowners were increasingly aware of the impact of energy efficiency on household bills.

He added: "Our first step is introducing an additional loan for existing customers which will only be available for approved energy efficiency home improvements."

The April 19th launch of the green mortgage follows the announcement by London & Country Mortgages that all its products will be green.

The no-fee mortgage broker announced it will plant sufficient trees to offset one person’s carbon emissions for every mortgage taken out.