NatWest adopts green home finance principles

NatWest has adopted the Green Home Finance Principles (GHFPs) for its Green Mortgage.

According to NatWest, it is the first High Street bank in the UK to adopt the principles, which were established by the Green Finance Institute.

The Institute works with finance practitioners, policymakers and non-profit professionals to identify the required policy, technology and financial pathways that will enable the transition to a green economy.

The GHFPs outline guidelines and a framework on how to process and track lending for energy-efficiency works. This can apply towards the purchase, retrofit, or self-build construction of domestic buildings.

NatWest offers a discounted interest rate to customers purchasing a property with an Energy Efficiency Rating of A or B.

The bank said it has an ambition to have 50 per cent of its mortgage book at or above EPC C or equivalent rating of C by 2030.

“NatWest is proud to be one of the major lenders to align with the principles established by the Green Finance Institute,” said Lloyd Cochrane, head of mortgages at NatWest Group. “We were one of the first lenders in the UK to introduce our Green Mortgage aligning with the Green Home Principles – and this will inform our green products and long-term roadmap going forward.”

Cochrane added: “The principles will ultimately help to make our homes healthier to live in, reduce our carbon footprint, create jobs and support UK leadership on the road to the COP26 in November.”

Dr Rhian-Mari Thomas, chief executive of the Green Finance Institute said: “Achieving a net-zero built environment will require rapid investment at a national scale by the public and private sectors. Mortgages are a critical mechanism for achieving this objective and the UK’s high street banks have a significant role to play, both in raising awareness and funding customers to retrofit their homes.”

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