Green mortgages generally fall into two categories:
Purchase or remortgage an energy-efficient home.
If the property you’re buying or living in has an Energy Performance Certificate (EPC) rating of A or B, you’ll get cashback or a better interest rate on your mortgage. This type of green mortgage is available to homebuyers and, in some cases, remortgagers.
Further Advance for you to carry out ‘green’ home improvements.
Green improvements could include replacing single-glazed windows, upgrading your heating system, or installing solar panels, for example. Typically, lenders will offer you a discounted interest rate or cashback on any money you borrow to upgrade your home’s energy efficiency.
Lenders are willing to offer incentives of this nature because they increasingly see energy-efficient properties – in this era of combating climate change – as less risky purchases and more likely to hold their value. Plus, if a homeowner is spending less on their energy bills each month, there’s less of a chance they’ll struggle to meet their mortgage repayments..
If this is of interest to you, please give us a call. If you are buying a new build, it will be something we discuss anyway.