6 June 2007
Saffron Building Society goes green
Saffron Building Society is to launch its first "green" mortgage, offering an incentive to those looking for an energy efficient home.
The Society's new product is aimed at both those looking at moving into an energy efficient home and those who have already made energy savings and are looking for a remortgage.
The mortgage offers a great rate of 5.85%, which is the Bank of England base rate, currently 5.50%, plus 0.35% for the life of the loan. To be eligible, the home must meet five out of eleven specific energy-saving measures.
Borrowers will also receive a free home energy performance certificate packed full of useful tips. Taking out a Saffron green mortgage will also help the wildlife of Essex - for every completed mortgage, Saffron will give £100 to the Essex Wildlife Trust.
Andy Golding, Saffron Building Society chief executive, said: "Saffron Building Society is rising to the energy efficiency challenge by offering this mortgage. The smaller lenders really are leading the way with regards to producing financial products that encourage energy efficiency.
"The largest mortgage lenders are still dragging their feet when it comes to offering products like our green mortgages and I think the smaller mutual Building Societies, which operate purely for the benefit of their members, can be the trailblazers on this issue.
"The Society is also taking a careful look at what else we can be doing to help the environment. It would be easy to state that we intend to go "carbon neutral", but it is important to us to ensure that we are not using carbon offsetting to ease our corporate conscience.
"Therefore, before we consider this, we need to look at what we can do to reduce, recycle or renew in all aspects of environmental management. We are, however, committed in 2007 to creating a formal action plan to reduce our impact on the environment."
Michele Farrant, Corporate Manager of Essex Wildlife Trust, said: "It is important that people are aware of what they can do on a personal basis to combat climate change and offering this mortgage to customers who comply with the five energy efficient measures, and donating to the Essex Wildlife Trust to undertake conservation work in the county, results in the environment benefiting from this initiative."
Saffron has released a podcast, available from iTunes, on the subject of green mortgages.
