Giraffe has decided to launch a three-year carbon offset deal, which offsets the average home’s carbon dioxide emissions for the three-year period.
Available at an initial rate of 5.58 per cent, the product has a loan-to-value of 95 per cent, with a maximum loan limit of £1 million. A £499 arrangement fee exists, with the higher lending charge paid by Giraffe. An early repayment charge of 3 per cent is in operation during the initial three-year period, with no extended tie-ins.
Alison Pallett, managing director of consumer lending at Bank of Ireland Personal Lending UK, said: “For a limited period, our customers can not only get the best rate in the market, but also help the environment too.”
Julie Harris, mortgage expert at moneyfacts.co.uk, added: “This deal saves consumers money as well as allowing them to help do their bit to save the environment.”
Jock Cassidy, managing director at Ashley Law, suggested that few borrowers would take the carbon offset element into account. “This sounds reasonable, considering the current market conditions. Consumers don’t care much about carbon offset though, as they want the best rate and few will consider the ethical factors when selecting a mortgage.”
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