GREEN MORTGAGES

A growing number of mainstream lenders now offer green mortgages. These mortgages are designed to reward homeowners for living in or purchasing energy-efficient homes or for making environmentally friendly home improvements. 

 There are two main types of green mortgages:

1. For Living in an Energy-Efficient Home:  If the property you’re buying or already own has a strong EPC rating, such as A or B, you may be eligible for certain green mortgage products depending on the lender’s criteria. This type of green mortgage may be available for home purchases and, in some circumstances, remortgages. 
2. For Making Green Home Improvements:  If you’re planning on improving your home’s energy efficiency improving through home improvements, such as installing solar panels, upgrading windows, or improving your heating system, some lenders may offer mortgage products designed to support energy-efficient improvements, subject to eligibility and lender criteria. 

Some lenders may view energy-efficient properties as presenting lower lending risk because lower energy costs could improve affordability and such properties may remain attractive to future buyers. Energy-efficient homes are more likely to hold their value over time and cost less to maintain. Homeowners with lower energy bills may also have an easier time meeting their mortgage repayments, making them a lower risk for lenders.