Driving Innovation in Green Mortgages

In February 2020, Kensington launched its first range of environmentally friendly products, the eKo Cashback Mortgage being the first Green mortgage product offered by a specialist mortgage lender in the UK. This product rewards borrowers that improve the energy efficiency of their home, by granting them a £1,000 cashback if they improve the EPC score of their property by at least 10 SAP points within 12 months of their mortgage completion date.

In May 2021, Kensington launched its next Green mortgage product to continue support the company’s green initiative. This product rewards owner-occupied and buy-to-let borrowers for purchasing an A or B EPC-rated New Build property by doubling the cashback fee compared to a regular cashback product – all green products have also now been extended to BTL customers and to also non New-Build properties.

Kensington intends to develop additional new green products this year to incentivise its customers to buy highly energy efficient properties and/or renovate existing buildings to improve their environmental performance.

In February 2022, Kensington was recognised at The Money Group Limited Awards for its Green Mortgage range, winning an award for the lender who is ‘Leading the Climate Change Initiative’.

Commitment to Green Lending

In June 2021, Kensington bought the 1st labelled Green Bond to the UK ABS Market - raising c.£640 million of green proceeds through the issuance of the Class A Green bond. c.£68 million of the green bond proceeds were allocated at closing of the transaction, with the remainder to be allocated within a 5-year time frame.

As at 30th May 2022, Kensington had financed £398,887,480 of green loans through its FSQ 2021-1 Green bond; achieving 62% of its target within the 1st year. Kensington aims to originate more than £800 million of green loans by 2026.

In March 2022, Kensington was recognised at the European Securitisation Awards for its efforts in innovating the RMBS ESG bond market by winning ESG/SRI Issuer of the Year.

An internal focus on climate change

In line with the current intense focus on climate change and the path to achieve net zero emissions by 2050, Kensington is committed to improving its ESG efforts in the energy sector by reducing its energy and carbon emissions. The firm has engaged in a behavioural change programme, space utilisation and energy efficiency projects in both its London and Maidenhead offices to improve its energy performance. Kensington commits to reducing its carbon emissions by 20% by 2025, implementing energy and carbon saving initiatives such as reducing electricity & minimising waste. Kensington also commits to increase paperless working and therefore reduce paper waste generated by a minimum of 20% by 2025.

In the 2021/22 financial year, Kensington has reduced its electricity consumption by 32%, decreased the paper generated by the firm by 26% and recycled 52% of its total [tracked] waste, exceeding the environmental target.