The product has an initial rate of 3.65% while renovation works are underway.
On completion of the works borrowers will be eligible for a discount of 0.25% for each energy rating step improvement based on the EPC of the property, up to maximum discount of 1.50%.
According to the lender, the new offering is designed to encourage borrowers to upgrade their homes to a better energy efficiency rating.
Applicants can borrow up to 90% of the property’s value on a repayment basis, however up to 75% on interest-only or part-repayment and part- interest only.
In addition, for homes renovated to the exacting Passivhaus EnerPHit standard, an enhanced discount of 1.25% is applicable on completion of the works.