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 living in has an EPC rating of A or B, you could qualify for cashback or a better interest rate on your mortgage. This type of green mortgage is available to both homebuyers and sometimes remortgages.
2. For Making Green Home Improvements: If you’re planning on upgrading your home’s energy efficiency (for example, by installing solar panels, upgrading to double-glazed windows, or improving your heating system), some lenders will offer you a discounted interest rate or cashback on any money you borrow to fund these improvements.

Lenders see energy-efficient properties as less risky purchases in an era focused on combating climate change. 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.