Green mortgages that don’t cost the earth

The Co-operative Bank is launching a range of new fixed rate mortgages, which offer both excellent value to all borrowers and peace of mind that they are making a positive contribution to the environment.

Whether buying for the first time, moving home or remortgaging customers benefit from a number of positive environmental features including receiving a free home energy report with their property valuation, which assesses the energy efficiency of the property and identifies ways in which it can be improved.

In addition, for the duration of the mortgage, the Co-operative Bankmakes an annual donation to Climate Care to help tackle global warming. Houses are one of the largest sources of carbon dioxide emissions in the UK and, by using the Bank’s annual donation, Climate Care will be able to offset around one quarter of an average home’s carbon dioxide emissions each year for the lifetime of the mortgage.

John Barker, Head of Mortgages at the Co-operative Bank, says: “With the current climate of uncertainty surrounding base rate changes, these new products offer customers an excellent rate and peace of mind that their rate will remain fixed at this level for the initial period of the loan.”

In addition to offering a comprehensive range of mortgage products, the Co-operative Bank does not impose costly Higher Lending Charges (HLCs) on borrowers who wish to borrow more than 95 per cent of the value of the property. Such charges, which are imposed by some other lenders, can potentially cost consumers up to an additional £2,000 when buying a home.