Mortgage Market News

Seeing Green: Exclusive Mortgage Rates for Energy Efficient Property Owners

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Banks Offer An Incentive To Show Their Commitment to Sustainability

Finance and climate change can work at odds. However, disentangling the two is not the solution. To tackle global warming effectively, we need to leverage the power of financial products and offerings to address key issues causing environmental damage. Nothing echoes this sentiment more than the green mortgages now on offer.

As part of the bank and building society commitments to sustainability, some private banks, high street banks and smaller building societies now offer a range of green mortgages, which provide access to exclusive mortgage rates to help support clients with more energy-efficient properties. Green mortgages are predicted to accelerate due to the urgency to change outdated energy structures, superseding them with energy-efficient systems, resulting in an eco-friendly long-term outcome. 

Some lenders have grand ambitions to have at least 50% of its mortgage book at or above EPC C or equivalent rating of C by 2030.

In some instances lenders also offer additional borrowing at a competitive rate for anyone wishing to fund green home improvements by retrofitting existing housing stock.

Paul Welch, CEO of largemortgageloans.com, comments, “We’re pleased to see banks playing an important role in helping to mitigate climate change by encouraging property owners to decarbonise buildings. We can provide access to lenders offering exclusive rates for properties certified with the performance energy rates A-C*.”  A range of green mortgages are available, and the scheme is particularly lucrative for new-build buy to let investors, with multiple properties in their portfolio, who are saving hundreds of thousands of pounds.

The scheme also extends to green remortgages. With 80% of existing housing stock in desperate need of being decarbonised, there is a wealth of opportunity out there to save money and help the planet. It’s a win-win situation for all parties. 

How Do Green Mortgages Work? 

There are three principal types of green mortgage available. 

  • Deals that offer anybody buying an energy-efficient property access to low rates;
  • Mortgages that offer cheaper rates or cashback when people make green home improvements to make their property more energy efficient;
  • Standard mortgages that offer a cashback reward to anybody buying an energy-efficient property. 

How Do I Improve My Properties EPC Rating?

Improving your EPC rating is relatively straight-forward and you could see a reduction in your utility bills. Here are a few easy wins to help you achieve a higher EPC rating:

  • Upgrade your lighting by installing LED light bulbs. 
  • Ensure that the walls and roof are well insulated;
  • Upgrade to double or triple glazed window;
  • Install a smart meter;
  • Invest in a more efficient boiler; 

Unlock Financial Savings By Securing A Green Mortgage

Paul Welch comments, “Anybody looking to capitalise on the exclusive rates offered by taking a green mortgage should get in touch. We will be able to do the legwork to ensure they improve their carbon footprint and save money relatively quickly with minimal effort required from their side.” 

To speak to a mortgage advisor about cost-saving by switching to a green mortgage, get in touch. 

*The property will need to have a valid EPC (energy performance) certificate available before valuation to qualify for these products.

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