Green Mortgages are becoming increasingly popular as they offer a range of financial incentives to homeowners who choose to purchase energy-efficient properties. Through a green mortgage, homeowners can take advantage of cashback rewards and potentially lower rates on their mortgages in exchange for investing in an environmentally-friendly abode.
Several mortgage lenders offer green mortgages for energy efficient properties, new build homes are usually ideal for this type of mortgage product.
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. You can check your home energy efficiency at www.gov.uk/find-energy-certificate
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.
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 borrow 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
Overall, green mortgages are a good way for homeowners to save money and reduce their environmental impact by investing in an energy-efficient home. With more lenders offering these types of deals, it’s well worth considering when you are looking for a mortgage.
This is why it's always 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. Certain providers will only lend on the property if it meets their criteria for you to be eligible for a green mortgage product, otherwise, you will be offered their standard product range.
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:
Taking out a green mortgage could be one of the most important decisions you make, both financially and environmentally. Not only could it save you money on energy bills in the long run, but it could also contribute to a healthier planet (positive impact on climate change) for future generations. So if you are considering investing in an energy-efficient home, then a green mortgage might be just what you're looking for!
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]
Whether you’re looking for a Free Automated Valuation, a mortgage offer, a price on insurance or advice on accessing business finance, we are here to help email us on [email protected] or call us on 0151 662 0188
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LTC Mortgages is a trading name of LTC Mortgages NW is authorised and regulated by the Financial Conduct Authority (FCA). The FCA regulates financial services in the UK and you can check our authorisation and permitted activities on the Financial Services Register by visiting the FCA’s website www.fca.org.uk/firms/systems-reporting/register. Our Financial Services Register number is 929476.