Digital bank Tandem launches green product feature

Its second charge mortgage feature will offer a "green discount" on new second charge mortgages, operated under its Oplo brand, offering a rate reduction of up to 0.5 percent for new customers with an EPC rating of A, B or C.

The discount will be applied at the point of application.

Tandem said it "believes strongly that banks can play a big part in supporting consumers to reduce their home’s carbon footprint".

It said that, with the government estimating that every UK home will need to reduce an average of 3.6 tonnes of carbon emissions by 2030 to meet 2050’s net zero target, this Is "the first initiative in mortgages" to support "greener" customers.

According to Tandem, over a quarter of Britons are "unaware, uninformed, unwilling or unsupported" on enhancing their green credentials.

To help tackle this, it said it will launch a series of initiatives and information to support customers in understanding their home’s current emissions, and how they can help reduce it.

Steve Beard, managing director for mortgages at Tandem, said: "Climate Change is one of the most important issues we’re facing in society today. Our customers are increasingly worried about doing their part, and with 15% of carbon emissions coming from our homes, the time to act is now.

"Today’s launch is an exciting and important first step, and we hope to see customers doing more to improve their home’s EPC rating."