Banks board environmental bandwagon

UK banks have unveiled a raft of new “green” mortgage and loans products following yesterday’s Budget announcement of environmental tax breaks.

The Co-operative Bank, which says it introduced the concept of green mortgages to the financial services industry seven years ago, revealed it is working on developing new eco features to be built into its existing mortgage portfolio.

Co-operative Bank chief executive David Anderson says: “We plan to extend our green proposition, which is available on all our products, by developing an innovative solution to reward and encourage homeowners to actively reduce their CO2 emissions.”

Anderson also committed to support the Government’s efforts to raise awareness and improve home energy efficiency over the long term.

HBOS and Abbey both responded to Chancellor Gordon Brown’s calls for major banks and lending organisations to take a proactive role in introducing “green finance” products to consumers. Both unveiled plans for new products.

HBOS, the UK’s largest mortgage lender, confirmed it would launch a new green mortgage next year while Abbey committed to introduce a “range of green loans to support home improvements and enhance energy ratings” in due course.