"Unlike other green initiatives, the eKo cashback mortgage is targeted at efficiency improvements to pre-existing properties"
Kensington Mortgages has launched a mortgage that rewards environmental home improvements.
Whether an individual is buying an older home or simply remortgaging, Kensington will pay £1,000 for improving the property’s energy efficiency evidenced on their Energy Performance Certificate (EPC).
The 'eKo' mortgage offers cashback when a homeowner improves their energy efficiency within the first year of completion. Homeowners only need to increase their energy rating by 10 SAP points – the equivalent to insulating a hot water cylinder and installing low energy lighting, or putting in solar panels, or loft insulation.
Kensington’s eKo cashback mortgage starts from 3.04% at 75% LTV and comes with free valuations and free legal advice on remortgages.
Mark Arnold, CEO of Kensington Mortgages, said: “Many people are becoming increasingly conscious of their carbon footprint and want to reduce it. So making energy efficiency improvements in your home is a no-brainer – you can help combat climate change and save on your bills at the same time.
“With Kensington’s new eKo mortgage you can also be rewarded in the form of cashback. We are particularly excited about this new product because unlike other green initiatives, the eKo cashback mortgage is targeted at efficiency improvements to pre-existing properties, rather than focusing on investment in new builds, offering the opportunity to help combat climate change to a much broader set of borrowers.”