Virgin Money launches Retrofit Boost mortgage with up to £15,000 cashback

The range offers cashback for borrowers to make their home more energy efficient.

Related topics:  Mortgages
Rozi Jones | Editor, Barcadia Media Limited
9th July 2024
Virgin Money
"The incentive empowers customers to invest in a more comfortable, sustainable and potentially cost-effective living environment."
- Craig Calder, head of secured lending at Virgin Money

Virgin Money has launched The Retrofit Boost, a new mortgage product designed to help borrowers improve their property’s energy efficiency.

Working with Hive, the Retrofit Boost mortgage offers customers a cashback amount to make their home more energy efficient. Hive has a range of packages for customers that can help make their home more energy efficient and can also help check for grants, and more. Customers are also free to spend their cashback with other suppliers to make the eligible improvements.

According to data from the Office of National Statistics the average house Energy Performance Certificate rating in the UK is band D, highlighting the need for home energy efficiency improvement.

Residential product options available at launch have a £995 product fee and include five-year fixed rates from 4.99% at 75% LTV and 5.04% at 85% LTV, both with £3,000 cashback. A seven-year fix is available at 5.74% up to 85% LTV with £10,000 cashback and a ten-year fix at 85% LTV has a rate of 5.84% with £15,000 cashback.

The Retrofit Boost mortgage is available exclusively via any intermediary registered with Virgin Money. The product is available for both residential and buy-to-let purchase and remortgage customers.

The minimum loan size is £150,000, and the product will be available for loans up to £500,000.

Richard Merrett, managing director at Alexander Hall and chair of The Green Mortgage Advice Initiative, said: "Virgin Money's new Retrofit Boost product is a breath of fresh air for homeowners and landlords. The cashback options, ranging from £3,000 to a substantial £15,000, have the potential to make a real difference, especially when it comes to larger retrofit projects like solar, battery storage and heat pumps.

“The crucial difference in their launch is in giving a 'what next' option for consumers, the inclusion of Hive, a trusted brand offering expert advice on energy-efficient solutions, simplifies the journey for clients by providing the ability to research and coordinate the retrofit process. As a broker, it expands the range of products we can offer our clients, allowing us to have a timely conversation about improving energy efficiency at a crucial point in the homeownership journey. Our expertise lies in advising on the financial aspects of the mortgage, while Virgin Money provides the funding, and a trusted partner delivers the retrofit solutions – it's a fantastic collaborative approach that truly benefits our clients.”

Dan Rosenfield, managing director of Centrica New Business and Net Zero, commented: “We are committed to helping people decarbonise their homes in a way that is simple and affordable for them. Through this collaboration we are pleased to share our decades of expertise which take the hassle out of home improvement. We are looking forward to working with Virgin Money to empower homeowners across the country to make their homes more energy efficient through the new Retrofit Boost Mortgage.”

Craig Calder, head of secured lending at Virgin Money, added: “At Virgin Money, we recognise the increasing desire among customers to create more efficient living spaces. However, traditional financing options for home efficiency upgrades can be restrictive. The Retrofit Boost Mortgage is designed to dismantle these barriers.

“By providing cashback specifically for efficiency improvements, this mortgage product removes a significant financial obstacle. The incentive empowers customers to invest in a more comfortable, sustainable and potentially cost-effective living environment.”

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