Lender offers reward for green home improvements

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Lender offers reward for green home improvements

Coventry for intermediaries has launched a £500 incentive for borrowers who make at least £2,500-worth of home improvements on their property.

Home owners can pick up to six of 20 improvements covering renewable energy, heat pumps, double glazing and insulation to qualify for the reward.

The incentive will continue until the end of next year, and promises to pay out within 30 days of a claim submission to a customer’s mortgage account.

Called the ‘Green Together Reward’, the scheme is open to both residential and buy-to-let borrowers who either intend to apply for a new mortgage, or change their existing mortgage.

Any improvements must be carried out by a TrustMark Registered Business - the government endorsed quality scheme .

The lender said it has aligned suggested improvements with the Green Finance Institute’s ‘Green Home RetroFit Finance Principles’.

“Greener homes are not only appealing to homeowners, they’re popular with prospective homebuyers too,” said Kevin Purvey, Coventry Building Society’s mortgage distribution director.

“Like many lenders across the market, we are looking to take a more active role in encouraging and promoting greener homes to help improve the environmental impact of the UK property market.

“With energy costs currently on the rise, now is a great time for homeowners to take steps to reduce the amount of energy they’re using at home.”

Coventry is keen for its mortgage broker network to lead the way in informing their clients of the scheme and how it works. 

“We’ve provided brokers with the resources they need to understand the scheme and have conversations with their clients about it,” he explained.

In August, Emma Cox, Shawbrook Bank’s head of sales, warned buy-to-let investors they may become mortgage prisoners if they do not make sure their property portfolio is eco-friendly.

She told FTAdviser: “We need to bring about an awareness of the impacts of not changing the [energy performance certificate] rating. We need to go deeper and broader to help landlords improve the housing stock. 

“These assets will stick on any banks’ balance sheet, because there is a risk of them becoming unmortgageable and unrentable.”