Leeds Building Society is to allow borrowers to offset the carbon footprint of their property during the fixed term of their mortgage.
The lender is the first to add a carbon offset benefit on all of its 95% LTV (loan to value) mainstream mortgages for purchase, and will invest in offsetting the forecast environmental impact of each home during the initial fixed term of the mortgage.
The benefit is available for all properties, regardless of their energy efficiency rating.
Leeds Building Society director of products Matt Bartle says: “We’re really excited to be the first UK lender to offer purchasers a unique way to address their home’s carbon footprint through their mortgage.
“Throughout this year we’ve been working hard to demonstrate our values by making direct links between our products and positive environmental action.
“This new carbon offsetting benefit for purchasers is available with a high LTV mortgage on any property whatever its EPC rating, as we understand bringing up your home to the highest standard can be expensive.
“We hope our offsetting of the home’s carbon footprint during the mortgage fixed term gives the buyer that time to consider next steps, such as saving up for improvements they need like a new boiler or replacement windows.
“This is a new and developing market so we’re launching our latest innovation on a pilot basis to gauge consumer appetite as we explore how to better support our members as they look to reduce their impact on the environment.”
The carbon offsetting benefit is available only for residential purchase with a 95% LTV mortgage, with a fixed term of either two, three, five or 10 years.
These products are on offer via intermediaries or direct from Leeds Building Society