UK's first solar mortgage launched in Northern Ireland

25th Feb 2008

The mortgage offers a 50 per cent reduction on Ulster Bank's standard variable rate for three years to cover the cost of purchasing and fitting the solar photovoltaic technology, in addition to the convenience of the whole process being handled by a leading provider.

Ulster Bank Head of Mortgages, Derek Wilson, says: "Mortgages are an extremely important part of our business and we consider this to be a significant innovation in the marketplace as well as an important step in helping bring domestic renewable energy technology into the mainstream."

"This new product will help make installation of solar panels much more affordable and cost-effective and provides reassurance to homeowners because the whole process is managed by a pre-approved, high quality supplier and installer."

Dr Andy McCrea, Director of Northern Ireland's renewable energy champion, Action Renewables, welcomed the new solar mortgage.

"Ulster Bank is leading the way in Northern Ireland and in the wider UK mortgage market with the introduction of this solar mortgage. We consider this to be an extremely significant development which will help make solar technology more affordable and will help further raise awareness of the important issue of addressing climate change. I would urge homeowners to consider the product as a convenient and cost-effective means of reducing their carbon footprint."

Mr Wilson adds: "We are committed to providing consumers with financial products that add value to their lives. In addition to the introduction of this product, we have also introduced a new mortgage switcher campaign this month which offers switchers benefits worth 1,000, no valuation fee, no legal fees and no arrangement fees*. In addition, we are guaranteeing an offer within 24 hours of application**."

Derry Newman, CEO, Solarcentury says: "We are delighted to be working with Ulster Bank in launching such an innovative product that makes solar more accessible and affordable. Solar photovoltaic technology is a clean, reliable and readily available alternative to fossil fuels, which generates clean electricity, producing power directly from daylight."

He adds: "We are particularly pleased to offer our own photovoltaic roof tile, which is manufactured in the UK including components from suppliers in Northern Ireland. This integrates seamlessly into the roof, adds value to properties and significantly reduces the exposure to the homeowner from future energy price rises."

Facts about solar energy:

• Solar photovoltaics (PV) use daylight, as opposed to heat, to generate clean electricity at the point of use. It is a common misconception that it is not effective in the cloudy UK, but as long as the sun rises in the morning PV will continue to generate electricity.
• Solar PV generated power could, in theory, provide 10,000 times more energy than the world currently uses. If we covered just three percent of the Sahara desert with PV we could generate all the world's electricity requirements.
• If every household and business in the UK installed a basic 1kW PV system, we could achieve the government's target of reducing carbon emissions by 12% within one year.
• Use of solar PV has dramatically increased over the past ten years, but varies widely across the world with Japan, the US, Germany and Spain using it with increasing frequency. In 2005 Germany alone installed over 800MW of solar technology. That's the equivalent of 320,000 solar roofs. By comparison, the UK installed just 0.6% of this figure in the same year.
• Solar PV installations are increasingly being recognised as an excellent way to invest in a property, often selling more quickly and/or at a premium. Several Solarcentury installations have sold at 5% -10% more that identical properties on the same development.
• PV also 'future proofs' your home or commercial property against rising fuel prices, the average energy bill in the UK close to 1,000 per year in January 2008. Five out of six main UK energy utilities have put up energy bills by 10-15% already this year. Solar technology is typically guaranteed for 25 years, but expected to last many years longer.

Ulster Bank is offering this product in partnership with Solar Century, the leading installer of integrated PV (Photovoltaics) solar panels in the UK. The management of supply and installation and the building control application are looked after by Solar Century.

Ulster Bank will pay your legal fees for standard re-mortgaging only, provided our nominated solicitor is used. However if you wish to use your own solicitor we will refund 300 towards the legal fees. Valuation fee paid (up to 190) - Valuation fee negotiable for properties valued in excess of 1 million.

*No arrangement fee applies to Flexible Tracker and Fee Free Discounted products only

**Assumes applicants are employed, LTV is less than or equal to 75%, affordability/income multiple criteria has been met, KYC and Money Laundering checks have been carried out and we are in receipt of all supporting documentation.