This month we’re collaborated with RSC New Homes to educate our purchasers and future home buyers on the benefits of green mortgages.
What is a green mortgage?
Essentially, a green mortgage is meant to increase the appeal of owning a green property. On top of the savings you'll make on your energy bills each month, the idea is that lenders give you cash back and/or a better interest rate when you take out a green mortgage on an energy- efficient property.
While you'd have been hard-pressed five years ago to find a single mainstream lender willing to give you preferential treatment on the basis of an energy performance certificate (EPC), there's now a handful of high-street banks that claim to do just that via their own versions of a green mortgage.
What do you need to do to qualify for a green mortgage?
Green mortgages generally fall into two categories:
1. Those that reward you for living in an energy-efficient home. Here, if the property you're buying or living in has an EPC rating of A or B, you'll get cash back or a better interest rate on your mortgage. This type of green mortgage is available to homebuyers and, in some cases, re-mortgagers.
2. Those that reward you for carrying 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 cash back 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. (Source https://www.moneysavingexpert.com/mortgages/green-mortgages/)
Andrew Mannion Director at RSC New Homes commented, "Green mortgages enable you to borrow more on your mortgage due to the energy efficiency of your property. It's never been more relevant given the recent increases in energy costs! We are seeing a huge uplift in customers enquiring about these specialist schemes."