NatWest has announced that it has adopted the Green Home Finance Principles (GHFPs), established by the Green Finance Institute. They are the first high street bank in the UK to become an adopter of the principles for its Green Mortgage.
The Green Finance 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.
GHFPs give the market clear 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 was one of the first lenders in the UK to introduce Green Mortgages last year, which offers a discounted interest rate to customers purchasing a property with an Energy Efficiency Rating of A or B. The Green Mortgage supports the bank’s pledge to help customers become more energy efficient with an ambition that 50% of the bank’s mortgage book is at or above EPC C or equivalent rating of C by 2030.
Lloyd Cochrane, head of mortgages at NatWest Group said:
“NatWest is proud to be one of the major lenders to align with the principles established by the Green Finance Institute. 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. 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 OBE, 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.
“We welcome today’s announcement by NatWest that its green mortgage product – launched last year to help homebuyers purchase an EPC A or B rated home – aligns with the Green Finance Institute’s recently updated Green Home Finance Principles. As the Principles aim to embed transparency, consistency and integrity into the UK’s green mortgage market, NatWest’s decision shows its commitment to maintaining the highest standards in the green finance market and sets a precedent for other high street lenders.”