Saffron Building Society has entered the ‘green’ finance market with the launch of two new products, the Retro-Fit Mortgage and the Enviro Saver savings account.
The Retro-Fit Mortgage, a two-year fixed-rate product aims to incentivise homeowners to invest in home improvements that provide an improved efficiency rating.
When borrowers provide evidence of an improvement in EPC (Energy Performance Certificate) rating by a single band, to a minimum of ‘E’ rating, they will be rewarded with a lower rate of interest for the remainder of the fixed-rate term.
Joining the new mortgage product is the Enviro Saver account which offers savers the opportunity to donate an additional 0.10% interest to an organisation selected from a list of nominated environmental charities. The building society has said that customers will be able to change their choice of charity each year.
Green Finance strategy
The move follows last year’s launch of the Green Finance strategy by the UK government. The strategy encourages financial services firms to develop and provide so-called ‘green’ products and solutions to customers.
Speaking to the media on the firm’s new product launch, Saffron BS’s Product Development Manager, Laura Bright said, “Having studied the [Green Finance strategy] guidelines I was keen to create green products from Saffron that can help to further enhance the government’s strategy, whilst also taking the first step to a greener future for Saffron Building Society and our loyal customers.
“Each product offers a little incentive to encourage borrowers to think of the environment, whilst giving a little something to the charities working so hard to save our planet.”