The eKo £1,000 Cashback Mortgage
A green mortgage available for purchases and remortgages.
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We’ll pay your client £1,000 cashback when they improve their home’s energy efficiency rating by moving to the next Energy Performance Certificate (EPC) banding e.g. D to C OR increasing their rating by at least 10 Standard Assessment Procedure (SAP) points.
The detail
Whether your client is looking to buy a new property, or remortgage their existing one, it’s usually a time to think about making home improvements. If better energy efficiency is top of that list, the eKo Cashback Mortgage could be right for them.
All they need to do is improve the property’s existing energy efficiency rating by either moving to the next EPC banding or increasing their SAP points by at least 10, and send us a new Energy Performance Certificate within 12 months of completing. If they’ve made all mortgage payments on time and in full, we’ll pay them £1,000 cashback.
£1,000 cashback paid upon qualification
Loans available up to 85% LTV
Up to 12 months to make the energy improvements and claim cashback
Select credit criteria applies
Free valuations available
Free legals on remortgages
Is my client eligible?
They're looking to remortgage and make energy efficiency improvements
They're purchasing a property with potential to improve its EPC rating
They meet the Select credit criteria
How our £1,000 eKo Cashback mortgage works
Step 1: Submit the application
Submit the property's current EPC as part of the mortgage application.
For your client
Step 2: Make the home improvements
After completion, the borrower makes energy efficiency improvements to the property within 12 months of the completion date.
Step 3: Get a new EPC
The borrower pays for a new Energy Performance Assessment (EPA) to be undertaken. This will provide a new EPC which determines how many SAP points the borrower has, or will evidence that they have moved up a band, after making the energy efficiency improvements.
Step 4: Send us the EPC
The borrower emails or posts the new EPC to us (address and email details in FAQ section). This needs to be received within 12 months of the mortgage completion date.
For us
Step 5: Cashback paid!
Once verified, £1,000 cashback is paid into the bank account associated with your client's direct debit mortgage payments. Their mortgage account must be up to date, with no missed payments.
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Frequently asked questions
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To claim cashback, your client can follow the steps outlined below. Note that the energy efficiency improvements to the property must have been carried out within 12 months of the completion date.
1. Client arranges and pays for a new EPA to be undertaken on the property.
2. Client posts or emails their new EPC to us no later than 12 months after their mortgage completion date:
- Email: generalenquiries@kensingtonmortgages.co.uk
- Post: Kensington Mortgages, Ascot House, Maidenhead Office Park, Maidenhead, SL6 3QQ.
3. Once verified, £1,000 cashback will be paid into the bank account associated with your client's direct debit mortgage payments, as long as their mortgage account is current with no missed payments since completion.
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To request a new Energy Performance Certificate, your client will need to apply for an Energy Performance Assessment (EPA).
The cost of an EPA varies according to area.
For properties in England, Wales and Northern Ireland, details of EPA assessors and an indication of prices can be found at www.epcregister.com and www.localsurveyorsdirect.co.uk.
For properties in Scotland, please visit www.scottishepcregister.org.uk.
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To qualify, the property being purchased needs to have potential to improve its EPC rating.
Below are examples of how this may look. Example 1 has an increase of over 10 SAP points difference. Example 2 has less than 10 SAP points but still shows the rating can be increased:
We suggest advising clients to review the ‘Recommendations’ and, if included, ‘Further measures to achieve even higher standards’ sections of their existing EPC. This will provide a good indication of whether any recommended energy efficiency measures are likely to result in the required criteria to gain the £1,000 cashback
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SAP points contribute towards a home’s overall EPC which measures the energy efficiency rating on a scale of A to G, with A being the most efficient.
Most UK homes are in bands D to E and making energy-efficient changes such as installing loft and cavity wall insulation can increase SAP points.
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There are many options borrowers can choose to improve a properties' energy efficiency*:
Energy Efficiency Improvement Potential SAP Point IncreaseSwapping to a condensing boiler 47 Insulating internal / external solid walls 20 Upgrading roof insulation 13 Installing cavity wall insulation 13 Insulating the loft 10 Installing solar panels 10 Insulating the hot water cylinder 8 Installing double glazing (UPVC) 4 Using low energy lighting 2 The EPC of the property will detail energy efficiency improvements that could lead to an improvement in their SAP rating.
*SAP points table has been calculated using CO2 data taken from The Energy Saving Trust website and Energy Performance Certificate (EPC) data from the Ministry of Housing, Communities & Local Government.
Sources:
https://energysavingtrust.org.uk/blog/energy-saving-budget
https://energysavingtrust.org.uk/home-insulation/solid-wall
https://energysavingtrust.org.uk/home-insulation/cavity-wall
https://energysavingtrust.org.uk/home-insulation/insulating-tanks-pipes-and-radiators
https://energysavingtrust.org.uk/home-insulation/roof-and-loft -
For properties in England, Wales and Northern Ireland, a copy of a property's EPC can be found at www.epcregister.com.
For properties in Scotland, please visit www.scottishepcregister.org.uk.
For new mortgages, an EPC will be provided as part of the Home Information Pack.
For remortgages, if the property does not have an existing EPC on the EPC register, or the existing EPC has expired, your client will need to have an Energy Performance Assessment (EPA) carried out to determine the current energy rating.