The number of lenders in the UK offering green mortgages is steadily expanding. Products aim to incentivise the appeal of owning a green home by giving you cashback, lower interest rates or even a larger loan when you take out a green mortgage on an energy efficient property.
What is a green mortgage?
Most green mortgages offer preferential deals based on a property’s energy performance certificate (EPC). This is a document showing how energy efficient your home is. EPC ratings range from A to G, with the most energy efficient homes getting an A rating. To qualify for this type of green mortgage, the property generally must already have an EPC rating of A or B. These products are available to homebuyers and, in some instances, people wishing to remortgage, so if you would like to find out if you qualify for a green mortgage, speak to one of our green finance experts.
Why now?
There are several reasons why a green mortgage could be right for you. At a time of rising energy costs, an efficient home could deliver significant cost savings. For example, figures by the Home Builders Federation show new build properties save an average of £2,000 in running costs each year.
Buying an energy efficient home is also a sound investment. Research by Santander has revealed that, on average, people are willing to pay 9.4% extra for a home that meets certain energy efficiency standards. For the environmentally conscious, owning a greener home will play a key part in the UK’s race to become net zero carbon by 2050, with the country’s 30 million homes accounting for 20% of our greenhouse gas emissions.
How can I find out more?
We have access to over 200 lenders and can help find the right deal for you in this growing market. Get in touch with us now and we can take you through the mortgage options most suitable for you.