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We're offsetting the carbon on all our new purchase 95% LTV mainstream residential fixed rate mortgages

Homebuyers will be able to offset their property’s carbon emissions during their fixed rate mortgage term through a unique innovation being piloted by Leeds Building Society.

We’re the first lender to introduce a carbon offset commitment on all our new purchase 95% LTV (loan to value) mainstream residential fixed rate mortgages. We’ll invest in offsetting the forecast environmental impact of an average home[i] during the fixed term of the mortgage. We’re doing this by purchasing carbon credits. You can learn more about how we’re offsetting carbon emissions in this article.

In another UK first, the mortgages are available for all properties, regardless of their energy efficiency rating.

“We’re really excited to be the first UK lender to offer purchasers a unique way to address their home’s carbon footprint during their mortgage,” said Matt Bartle, Leeds Building Society’s Director of Products.

“Throughout this year we’ve been working hard to demonstrate our values by making direct links between our products and positive environmental action.

“This new carbon offsetting benefit for purchasers is available with a high LTV mortgage on any property whatever its EPC rating, as we understand bringing up your home to the highest standard can be expensive.

“We hope our offsetting of the home’s carbon footprint during the mortgage fixed term gives the buyer that time to consider next steps, such as saving up for improvements they need like a new boiler or replacement windows.

“This is a new and developing market so we’re launching this latest innovation on a pilot basis to gauge consumer demand as we explore how to better support our members as they look to reduce their impact on the environment.”

Leeds Building Society already offers cashback mortgages and discounted rates for the most energy efficient homes[ii], as well as investing in tree planting in the Yorkshire Dales[iii] linked to its children’s savings accounts.

In addition, we’re making good progress against the challenging targets we set ourselves to reduce our carbon footprint as part of our responsible business strategy, achieving carbon neutral status for scope 1 and 2 emissions[iv] this year, more than 12 months ahead of plan.

The carbon offset commitment is available only for residential purchase with fixed term mortgages of either two, three, five and 10 years at 95% LTV.

These products are available via intermediaries or direct from Leeds Building Society.

 

 

[i] To offset the amount of carbon produced by heating/lighting/power usage by a typical Leeds Building Society property calculated at 4.2 tonnes of carbon per annum

[ii] Property must have an EPC (Energy Performance Certificate) rating of A-C, or a PEA (Predicted Energy Assessment) rating of A-C if a new build

[iii] Leeds Building Society’s partnership with Yorkshire Dales Millennium Trust aims to dedicate 1,000 new broadleaf trees, one for every children’s savings account opened in its branches. The initiative aims to support wildlife habitats, help to mitigate the impact of climate change, and encourage more children and their families to connect with and enjoy nature.

[iv] Part of our Climate Change Framework, based on four pillars (Risk Management and Scenario Analysis, Reporting and Disclosure, Carbon Footprint and Products), designed to meet the requirements of TCFD on a proportionate basis.

Scope 1 covers direct emissions from owned or controlled sources; Scope 2 covers indirect emissions from the generation of purchased electricity, steam, heating and cooling consumed by the reporting company; and Scope 3 includes all other indirect emissions that occur in a company's value chain.

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