Summary:
Foundation Home Loans (FHL) has introduced a £500 cashback incentive for its green mortgages, replacing its previous free valuation offer. This applies across all credit tiers (F1-F4), expanding access to energy-efficient home financing for borrowers with varying credit histories. The lender also reduced rates by up to 20bps on multiple mortgage products, including remortgages and EPC saver loans. These changes reflect FHL’s commitment to competitive pricing and sustainability in the residential mortgage market.
What This Means for You:
- Cashback Opportunity: Borrowers can now receive £500 upon completing a green mortgage, making energy-efficient homes more financially attractive.
- Broader Eligibility: FHL’s green mortgages are now available to borrowers with less-than-perfect credit (F3-F4 tiers), increasing accessibility.
- Lower Rates: Rate cuts of up to 20bps on core products like remortgages and EPC savers could save borrowers hundreds over the loan term.
- Market Trend: With lenders predicting all mortgages may eventually be “green,” securing an energy-efficient property now could future-proof your investment.
Original Post:
Foundation Home Loans (FHL) will now pay £500 cashback on completion of one of its green mortgages.
The cashback replaces the previous free valuation, and has been made available across all FHL credit tiers (F1-F4) for the first time.
The lender said this was an expansion of its green mortgage strategy, extending support for energy-efficient homes to borrowers including those with less-than-perfect credit histories.
The lender’s green mortgages are available on properties which have an A-C Energy Performance Certificate (EPC) rating.
FHL has also cut rates by up to 20bps on its F1–F4 core, remortgage, EPC saver, joint borrower sole proprietor, professionals and key worker homeloans.
Highlights include F1 remortgage loans cut by up to 15bps, starting from 5.49% with a £595 fee, as well as F1 EPC saver products being cut by up to 20bps, with rates from 5.64%, a £995 fee and £1,000 cashback.
FHL has also launched new green mortgages for F1 and F2, including a two-year fix at 5.29% up to 65% LTV.
Similarly, the lender has brought out green products for F3 and F4 at 75% LTV, with rates from 5.89% and 6.19% respectively, and a £595 fee and £500 cashback.
FHL director of product Tom Jacob said: “These changes reflect both a desire to support brokers through the remainder of the year and a recognition of how the market is evolving, with growing demand for products that can adapt to more diverse borrower circumstances.
“The extension of our green range to cover all credit tiers is a key milestone for Foundation Home Loans.
“We know brokers are looking for options that combine competitive pricing with long-term value, and this refresh reinforces our focus on delivering precisely that – a sustainable, specialist, and consistent offering across the residential market.”
Around a quarter of lenders believe all mortgages will be green one day, according to research from Mortgage Advice Bureau earlier this year.
Extra Information:
Related Resources:
• EPC Register: Check a property’s energy efficiency rating to qualify for green mortgages.
• UK Government Energy Efficiency Grants: Explore additional funding for home upgrades to meet EPC requirements.
People Also Ask About:
- What is a green mortgage? A loan offering incentives (e.g., lower rates, cashback) for energy-efficient homes with A-C EPC ratings.
- How does cashback work on mortgages? Borrowers receive a lump sum (e.g., £500) after completing the mortgage, reducing net costs.
- Can I get a green mortgage with bad credit? Yes, FHL now offers green products for F3-F4 credit tiers (subprime borrowers).
- Are green mortgages cheaper? Typically yes—lower rates and incentives like cashback reduce long-term costs.
Expert Opinion:
Tom Jacob’s emphasis on “sustainable, specialist” lending signals a shift toward niche products that balance affordability and environmental impact. As regulatory pressure grows (e.g., upcoming 2025 EPC reforms), green mortgages may become the default, rewarding early adopters with today’s incentives.
Key Terms:
- Green mortgage cashback incentives
- EPC A-C rated property loans
- Subprime green mortgage options
- Energy-efficient home financing
- Foundation Home Loans rate cuts
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