green mortgages

Over the past few months, lenders have become more and more competitive introducing new deals, lower rates and greater incentives to attract customers. Among these new deals are green mortgages.

Green mortgages have been popping up in the news a lot recently, and you might be wondering what all the fuss is about. We’ll be unpacking green mortgages in this blog article: what they are, what are the benefits, and how to get one.

What are green mortgages?

Simply put, green mortgages offer buyers of more eco-friendly homes better interest-rates, a bigger loan or even cashback. Alternatively, as an existing homeowner you could remortgage and access cheaper rates if you agree to make home improvements that will make your property even greener.

What are the benefits? 

This really is a win-win situation: opting for a green mortgage could get you a better mortgage deal (lower interest rate or increased borrowing capacity) plus your home will energy-efficient which is good for the planet and good for your pocket.

For those looking to buy a sustainable property from the get-go, lenders require the property in question to meet the minimum level of energy efficiency – an EPC of band A or B. Or for existing homeowners, lenders will offer customers better mortgage deals if they can improve their home and make it more sustainable by installing solar panels or energy-efficient lightbulbs for example.  

Don’t forget, getting a greener home with increased energy efficiency will bring down the cost of your bills too - for example, if the walls are insulated you will save on energy by reducing heat loss through your external walls. Just think about how much money you could save, not just by getting a cheaper interest rate on your mortgage but also with your bills!

The bottom line

Green mortgages are a fantastic initiative that offer higher loans, better interest rates and sometimes cashback, while also promoting a greener, more sustainable future. If you’re looking to buy or remortgage and you’d like to consider a green mortgage, give us a call 01633 987070.