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Image Credit: Virgin Money
Virgin Money has unveiled its latest venture into the burgeoning green mortgage market by introducing a new product named Retrofit Boost. Designed to assist households in funding energy efficiency upgrades, this innovative mortgage offers substantial cashback incentives to spur home retrofit projects.
Virgin Money's new mortgage product, in collaboration with Hive, a smart meter and energy services provider, offers a generous cashback scheme. Homeowners can secure up to £3,000 cashback with a five-year fixed mortgage, £10,000 with a seven-year fixed mortgage, and an impressive £15,000 with a ten-year fixed mortgage. The product fee is set at £995.
This mortgage is available to both residential and buy-to-let customers. With the cashback received, customers can access a suite of energy-efficient services from Hive, including eligibility checks for additional grants. However, customers can use their cashback with other suppliers to implement energy-saving measures.
Green mortgage products are gaining traction, offering appealing deals to those committed to enhancing their property's energy efficiency. Retrofit projects increase property value and lower energy bills, reducing the likelihood of loan defaults. As a result, mortgage providers can offer more attractive terms to environmentally conscious customers.
Richard Merrett, managing director at mortgage broker Alexander Hall and chair of The Green Mortgage Advice Initiative (GMAI), welcomed the new offer. "Virgin Money's new Retrofit Boost product is a breath of fresh air for homeowners and landlords," he said. "The cashback options, ranging from £3,000 to a substantial £15,000, have the potential to make a real difference, especially when it comes to larger retrofit projects like solar, battery storage, and heat pumps."
"The crucial difference in their launch is in giving a 'what next' option for consumers, the inclusion of Hive, a trusted brand offering expert advice on energy-efficient solutions, simplifies the journey for clients by providing the ability to research and coordinate the retrofit process. As a broker, it expands the range of products we can offer our clients, allowing us to have a timely conversation about improving energy efficiency at a crucial point in the homeownership journey."
Craig Calder, head of secured lending at Virgin Money, said the new offer was helping to meet the growing demand for customers who want more energy-efficient and sustainable homes.
"At Virgin Money, we recognise the increasing desire among customers to create more efficient living spaces," he said. "However, traditional financing options for home efficiency upgrades can be restrictive. The Retrofit Boost Mortgage is designed to dismantle these barriers.
"By providing cashback specifically for efficiency improvements, this mortgage product removes a significant financial obstacle. The incentive empowers customers to invest in a more comfortable, sustainable, and potentially cost-effective living environment."
Virgin Money said the minimum loan size available through the offer would be £150,000, while the product would cover loans worth up to £500,000.
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