Introducing Green Mortgages

This article will help you gain a better understanding of;

• What green mortgages are
• How you can qualify for a green mortgage
• Define what is meant by an EPC rating
• The benefits of green mortgages
• How to apply for a green mortgage

WHAT ARE GREEN MORTGAGES?

Green mortgages are designed to increase the appeal of owning a property with a good Energy Performance Certificate (EPC) rating, or encourage you to make changes to your current home to improve its EPC rating. Lenders reward qualifying borrowers for purchasing an energy-efficient home, rated an A or B EPC with cashback and/or a better interest rate on your mortgage deal.

Green mortgages are not ‘new’ to the market. The first green mortgage offered in the UK dates back to 2006*, although their availability has increased over the last five years with big name lenders such as Barclays, Nationwide, TSB and many more now offering green mortgages to borrowers. Start a conversation with one of our experienced mortgage advisers here.

HOW DO I QUALIFY?

To be successful in your application for a green mortgage, it’s important you meet the requirements. Green mortgages generally fall into two categories for qualification.

1. Living in or purchasing an energy-efficient home. If the property you’re living in or looking to buy has an EPC rating of A or B, you may be eligible to get cashback or a better interest rate on your mortgage. This form of green mortgage is available to homebuyers and in some circumstances, remortgagers too.
2. Carrying out ‘green’ improvements on your existing home. Improvements to your home that boost the energy-efficiency of the property may also make you eligible for a green mortgage. Improvements that are accepted include installing solar panels, replacing single glazed windows with double glazed windows, and upgrading your heating system are just a few examples.

WHAT IS AN EPC RATING?

An EPC rating is used to define the energy-efficiency of a home and is required whenever a property is built, sold, or rented. The ratings provided scale from A (most efficient) to G (least efficient) and an EPC rating is valid for 10 years.

EPC’s contain information on a property’s energy use and typical energy costs. They also provide recommendations on how to reduce energy use and save money. Interested to know what your homes EPC rating is? Click here

It’s important to remember that you can be fined if you do not get an EPC when you sell or let your property. Some buildings do not require an EPC rating – to learn which ones these are, visit the government page on EPC ratings here.

BENEFITS OF A GREEN MORTGAGE

• You could achieve a lower interest rate on your mortgage.
• You could receive cashback on your mortgage deal.
• Available to current homeowners looking to improve the energy-efficiency of their home.

HOW DO I APPLY FOR A GREEN MORTGAGE?

Applying for a green mortgage is similar to that of a regular mortgage. The main difference in the process is ensuring the property you’re looking to buy or currently own has an EPC rating of A or B. Should you be looking at a green mortgage to carry out energy-efficient improvements to your home, you should make sure that the changes improve your homes energy efficiency. Get in touch with us to find out more information and begin the application process here.

INTERESTED IN BUYING A GREEN HOME?

Introducing Driftwood Mews

A brand-new development in the sought-after village of Westgate-On-Sea, consisting of twelve unique two-bedroom eco-friendly houses.

The contemporary homes have an impressive A EPC rating providing low running costs, ideal for modern living. Off-street parking is also included, and all homes come with a 10-year Build Zone warranty.

Click here to learn more

OVERVIEW

A green mortgage could save you money as you reap in the rewards for making greener choices for your home. If you’re looking to buy a home with an EPC rating of C and below, a regular mortgage deal may be best suited to you.

We always recommend speaking to a mortgage expert before acting on your next mortgage. With access to over 90 lenders and a panel of insurance providers, we’re well-placed to find you a mortgage deal that best suits you and your needs. To speak to an experienced mortgage adviser from Finamply, click here.

*statistics from Green Finance Institute – “The way ahead for the UK’s green mortgage market”