What is a Green Mortgage?

Mortgage lenders are now looking to encourage buyers and builders to take an interest in and improve energy efficiency going forward and you may therefore have heard of ‘Green Mortgages’. So what is a green mortgage?

Basically the interpretation of ‘green’ in this instance is that if you buy a home with an energy performance rating (EPC) of A or B then some lenders are now offering a preferential mortgage interest rate or cashback incentive. There are also some lenders who will offer these rewards to you for borrowing money to carry out home improvements to make your home more energy efficient.

The thinking behind this is that a) energy efficient homes will not have such high bills therefore somewhat protecting the homeowner from rising bills and costs and b) lenders feel that energy efficient properties are more likely to hold their value for the future.

An EPC certificate gives a property an energy efficiency rating from A (most efficient) to G (least efficient) and is issued when a property is built, bought or sold. It is registered on the government website for a period of 10 years and will often be quoted on property particulars when purchasing from an estate agent.

This score is based on several factors including cavity wall insulation, loft insulation, type of heating, double glazing and low energy lighting and will be assessed by a qualified energy assessor. Details of a property's EPC rating are normally available online. Use the https://www.gov.uk/find-energy-certificate database if the property you're researching is in England, Wales or Northern Ireland.

If you would like more information, please contact us, or make an initial appointment and we will be happy to help.