- A new savings account and mortgage product have launched to focus borrowers and savers minds on environmental issues
- Green issues are still at the forefront of consumer’s minds looking to the future
- Government’s Green Finance Strategy was launched in 2019
In July 2019, the UK government launched their Green Finance strategy. It supports the UK’s economic policy for strong, sustainable, and balanced growth plus domestic and international commitments on climate change, the environment and sustainable development.
Part of the strategy is the “greening of finance” which encourages financial institutions to consider data and analytics relating to climate change and create ‘green financial products’ to further deliver on the countries aims for a greener future.
After spending months anaylising the requirements of the strategy, Saffron Building Society have today announced two brand new products in their first step into offering green financing solutions to their customers.
Savings Account:
For those looking to save for the future and give back to the environment, Saffron have today released the Enviro Saver. The savings account can be opened online, with a minimum deposit of £10 and a maximum balance of £500,000. The interest on the account is 0.35% (annually) with an additional 0.10% donated to an environmental charity. The chosen charity – during each 12-month interest period – is chosen by the customers from a list of nominated environmental charities, which can be changed each year.
Mortgage:
Alongside the Enviro Saver, the building society is also offering a green Retro-Fit Mortgage. The purpose of this mortgage is to encourage borrowers to upgrade current housing stock to a better energy efficiency rating (EPC). If updating a home, the mortgage offers an interest reduction reward for the remaining time of the two year fixed rate, when the borrower can prove that any upgrades made to the property, have improved the EPC by one band, to a minimum of a quite achievable E.
Laura Bright, Product Development Manager at Saffron Building Society and the developer of the green products, comments: “I was made aware of the government’s green financing scheme last year. Having studied the 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.”
Both the Enviro Saver and the Retro-Fit Mortgage are available now. To apply for the savings account visit www.saffronbs.co.uk. To discuss the Retro-Fit Mortgage, visit your preferred mortgage broker and mention Saffron Building Society.