Nationwide £500 Green Reward for Homeowners
Nationwide alongside some other UK lenders, are launching green mortgages and incentivising energy efficiency and home purchases and improvements.
This could be fantastic news for buyers who are seeking cashback but that doesn’t necessarily mean that you have got the best mortgage deal on the market. Using a broker like ourselves, we can advise you on the mortgage products that are available on the market; a cashback incentive may be giving you a discount however a mortgage broker will search the whole market and may be able to find you an overall cheaper mortgage product.
What homes qualify for green rewards with Nationwide?
Nationwide’s Green Reward is available to eligible applicants purchasing any property, whether it’s an existing house, flat or new build with a Standard Assessment Procedure (SAP) rating of at least 86+ which is equivalent to an Energy Performance Certificate rating of A or High B.
Those who are purchasing a property with an SAP rating of 92 or above will benefit from £500 whilst those buying somewhere rated at SAP 86 – 91 will receive £250
First time buyers could receive up to £1,000 if they also take out a mortgage with Nationwide because of their £500 cashback.
What are the eligibility criteria?
- Buying a home with a Nationwide mortgage (first time buyer or home mover)
- Complete on a mortgage on a property with a score of 86 or more
- The EPC documents need to be on the government online register within 2 weeks of your mortgage completion.
To receive the cashback, you must complete all three of the above criteria.
When do buyers get their cashback with Nationwide Green Rewards?
After completion of the mortgage, the Society will review the EPC register to check the rating of the property. Once the rating of the property has been confirmed, the Green Reward cashback will be paid to the buyers within four weeks of completion.
You can borrow more to make a current property more energy efficient
From the 21st of April 2021, Nationwide has also provided a green incentive to their customers who are seeking additional borrowing on top of their current mortgage.
The society reduced the rate on its Green Additional Borrowing product to 0.75% for loans of between £5,000 and £25,000. Homeowners looking to borrow between £5,000 and £25,000 on top of their current mortgage with Nationwide, can do so at this lower rate as long as at least 50% of the loan is spent on energy efficient home improvements.
The new rate, which is available up to 85% LTV and comes with no product fee, is the same regardless of what LTV level the borrowing is at.
What counts as an energy improvement?
To improve energy efficiency of new and existing homes, Nationwide will provide their reduced rate of 0.75% for additional borrowing if at least 50% of the loan is spent on energy efficient home improvements such as:
- Fitting loft, underfloor or cavity wall insulation
- Upgrading to double or triple glazed windows
- Air source heat pumps
- Electric car charging stations
- Swapping to a condensing boiler
- Installing low energy lighting
- Installing an insulating hot water cylinder
What other lenders provide green mortgage incentives?
As well as Nationwide, Barclays, Natwest and RBS are all offering green mortgages, all with their own varying incentives including cashback.
However, the ability to take out a green mortgage will vary heavily depending on the lender and your own circumstances such as your age, annual earnings, credit history and stability of income.
Your home is at risk if you do not keep up repayments on the mortgage.