Green Cashback Mortgage Launched

Published / Last Updated on 29/04/2021

Nationwide has launched a 'green' cashback mortgage for homebuyers who purchase a property with a high energy efficiency rating.

Properties purchased will qualify if:

  • Energy Performance Certificate (EPC) rating A mortgaged properties are eligible for £500 cashback
  • Mortgages for properties with an EPC rating B are eligible for £250 cashback.

A total of £1,000 cashback for first time buyers may be available if they already qualify for a cash incentive on the mainstream first time buyer range and can add the green reward on top.

Home movers and first-time buyers are eligible and there are no restrictions on the type of property that can be purchased.

The Nationwide announcement follows Defaqto analysis revealing 26 green mortgage deals on the market for homebuyers to choose from.

According to Defaqto the lowest green mortgage rate is from Natwest 1.13% 2-year fixed rate at 60% loan to value (LTV).  The cheapest non-green mortgage rate is 1.24% with First Direct.

Green mortgages are now going mainstream being offered by Barclays, Natwest and RBS. 

Eligible properties will have an energy efficiency rating of A or B, although Foundation Home Loans have a range of products for homes with a rating of C or above.


The UK has signed the Paris Climate Agreement and is pushing for the UK to become carbon neutral.  Regulatory and legal requirements now requiere UK businesses to look at their carbon footprint and demonstrate that they are moving towards being greener.  This is filterinfg down to all areas of financial services.

This is an incentive for all.  If you are selling a property, making it more energy efficient will make it more attractive to buyers and of course lower fuel bills for both you and your prospective buyer.  For the buyer, a greener home is good for your future energy bills and of course discounts or other incentives for mortgage costs and fees.

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