Nationwide has cut the rate on its green additional borrowing offer by up to 1.80%, to its lowest ever further advance rate.

The society suggested the move is to encourage people to make their homes greener, more sustainable and fit for purpose.

This latest reduction means Nationwide’s green additional borrowing will be available at 0.75% for loans of between £5,000 and £25,000 up to a maximum of 85% LTV.

The new rate will also be the same regardless of the LTV level the borrowing is at – meaning the higher the LTV, the bigger the rate reduction. The rate has seen the biggest reduction at 85% LTV, having previously sat at 2.55%.

At least half of the loan must be used to fund a range of sustainable home improvements, the society highlighted, including the addition of solar panels, air source heat pumps or electric car charging points.

Nationwide added that it will be extending its green offering through mortgage brokers in the coming weeks.

“We know more needs to be done to help people green their homes, especially as buildings are the second largest source of emissions in the UK,” commented Nationwide director of mortgages, Henry Jordan.

“We hope by making significant cuts to the rate on green additional borrowing, we are giving our members real impetus to make their existing homes greener, while ensuring we continue to play our part in tackling climate change.

“We also realise that some members may look at their options via intermediaries, which is why we will start offering our green additional borrowing to brokers in the coming weeks.”

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