A green mortgage is a type of home loan that helps homeowners to save money and reduce their environmental impact by investing in an energy-efficient home. The incentives for securing this type of mortgage vary between lenders and may include cashback for buying an energy-efficient property, or a lower interest rate. It is important to compare lenders' offers before taking out a green mortgage to make sure you get the best deal.

In order to be eligible for a green mortgage product, certain providers will only lend on the property if it meets their criteria. One of these criteria is often the Energy Performance Certificate (EPC) rating of the home, which assesses its energy efficiency and environmental impact. Therefore, to improve your chances of accessing a green mortgage, you may want to consider investing in improvements that can increase your EPC rating.

Energy Performance Certificate

An energy performance certificate (EPC) is a document which indicates how energy efficient a property is. To qualify for a green mortgage, usually you will need to provide evidence of a valid energy performance certificate (EPC) that rates the home in terms of its energy efficiency. This can be provided by an authorised assessor and the EPC rating will range from A-G (energy efficiency bands) depending on the property’s level of energy efficiency.

In addition, some lenders may require other forms of proof to show that the home has been built with green-friendly materials and techniques, the house builder may be able to provide you with these documents if the property is a new build. This could include an eco-survey, which assesses the building’s environmental impact and carbon emissions, or a sustainability report from a specialist organisation.

To access your energy performance certificate visit the Government website here

How can I benefit from a green mortgage?

The incentives for a green mortgage can vary between lenders. Some lenders may offer cashback for buying an energy-efficient property, while others may offer a lower interest rate, a better rate will incentivise homeowners to make their home more energy efficient when looking to borrow money from a lender for their mortgage.

If you are looking to do a mortgage application for additional borrowing on your current property then this is possible as long as the property meets the green mortgage lending criteria. Before you remortgage always check to see if you have any early repayment charges on the mortgage before you commit.

Some lenders may lend extra money on top of your standard mortgage if you’re planning to carry out ‘green’ home improvements. Therefore, green mortgages could be a useful solution for those trying to make their existing property more sustainable

Improving your EPC

If you want to improve your current EPC rating there are steps that you can take to do this. Some of these steps are easy and simple and others can be a bit more costly. There are several ways to make your property more energy efficient and save money on utility bills, such as:

• Energy saving light bulbs
• Loft insulation
• Cavity wall insulation
• Hot water cylinder insulation
• Solar Panels
• Double glazing
• Replacing old boilers

In conclusion, green mortgages are becoming increasingly popular as they offer homeowners the opportunity to access more favourable financing options whilst making their home more energy efficient. It is important to shop around and compare lenders' offers before taking out a green mortgage, so you can make sure you're getting the best deal for your particular circumstances. Improving your EPC rating may also help you access better deals in the long run.

If you think your property or the property you are purchasing may be eligible for a green mortgage then speak to one of our mortgage brokers today to see if the property meets the criteria. Call us on 0151 662 0188 or email at [email protected].