Foundation Home Loan (FHL) will now pay you £500 cashback when you complete one of its green mortgages.
This cashback replaces the previous free valuation and is available across all FHL credit tiers (F1-F4) for the first time.
The bank said it was an extension of its green mortgage strategy, extending support for energy-efficient homes to borrowers, including those with less than perfect credit histories.
The lender’s green mortgage is available for properties with an AC Energy Performance Certificate (EPC) rating.
FHL has also cut interest rates by up to 20 basis points on its F1-F4 core loans, remortgages, EPC savers, co-borrowers sole proprietors, professionals and key worker housing loans.
Highlights include up to 15 basis points reductions on the F1 remortgage, with rates starting from 5.49% and fees of £595, and up to 20 basis point reductions on the F1 EPC savings product, with rates starting from 5.64%, fees of £995 and £1,000 cashback.
FHL has also launched new green mortgages for F1 and F2, including two-year fixed rates ranging from 5.29% to 65% LTV.
Similarly, the lender has also launched a 75% LTV green product for F3 and F4, with interest rates of 5.89% and 6.19% respectively, fees of £595 and cashback of £500.
Tom Jacob, product director at FHL, said: “These changes reflect both our desire to support brokers throughout the remainder of the year, as well as recognition of how the market is evolving and the growing demand for products that can adapt to a more diverse borrower environment.
“Expanding our green scope to cover all credit tiers is an important milestone for Foundation Home Lending.
“We know agents are looking for options that combine competitive pricing with long-term value, and this update reinforces our focus on delivering the right service – with a sustainable, professional and consistent product across the residential market.”
According to research by the Mortgage Advice Bureau earlier this year, around a quarter of lenders believe all mortgages will one day be green.
