Green Mortgages – what’s that all about….

Are you thinking of buying an energy-efficient home, or making changes to ensure your property is more sustainable ? Then maybe a green mortgage may be on interest.

If so, you’ll find a growing number of ‘green’ mortgage options available. If you meet the green mortgage criteria, it’s possible to take a little off your monthly mortgage repayments.

What are green mortgages?

Green mortgages offer favourable terms to buyers of homes that meet certain energy efficient standards. They can also incentivise homeowners to make energy efficient home improvements. But as you might expect there is a wide variety of products on the market.

How do green mortgages work?

Green mortgages can work in a few different ways. For example, perhaps with a cheaper rate if your property is energy efficient.

Energy Performance Certificates (EPCs) are a major component for lenders offering green mortgages EPCs show how energy efficient a property is, using ratings between A, the highest, and G, the lowest.

If you are considering making some green home improvements, a green mortgage could be a smart way to raise money. You may want to consider a green mortgage if you are looking to buy a new build property, or any property that has an energy rating of A or B.

However, if you are buying a property with an energy efficiency rating of A or B it is still a good idea to review all your borrowing options. Our brokers will always look at and compare all mortgage features, things like interest rates, incentives, deal periods and charges.