Green homes deserve a green mortgage

In the back of our minds, we are all aware that our houses should, and could, be more energy efficient. An Energy Performance Certificate (EPC) has been a key part of the purchasing process since 2007. This colourful piece of paper has listed home energy efficiency recommendations for an unimaginable number of properties since it was introduced. But how many of us heed the advice given, or even give it a second thought once we move in?

Houses consume lots of energy and there is an urgent need to increase the current rate of energy efficient building renovation from 1 - 3% per year, to meet climate change targets set out in the UN Paris Agreement.

The tide is finally turning in the mortgage market to make ‘green’ mortgages available to those buying properties exhibiting the best energy performance credentials. So if making your home more eco-friendly IS already happening for you, conserving and protecting resources IS high on your agenda, or you’ve decided that that now IS the time to start making a difference; then here’s why green mortgages will be right up your street.

What is a green mortgage?

Green mortgages offer borrowers preferential rates directly linked to the energy performance of their properties. For some lenders, this is based entirely on the EPC rating of the property. Their evolution has stemmed from the climate crisis, and they give homebuyers and investors an extra impetus to look at newer, more eco-friendly properties to help keep their costs down.

What is the criteria for a green mortgage?

To qualify for a green mortgage, you need to live in an energy-efficient home or commit to increasing your current home’s energy efficiency rating. Each lender has slightly different criteria, so you need to understand the terms and conditions before applying.

Research by the Energy Saving Trust in the UK suggests that the majority of major renovations are carried out within the first year of ownership. So if you are planning on buying a project property, and already have eco-conscious improvements in mind, then a green mortgage can support you on your journey.

Are green mortgages expensive?

You’d be forgiven for thinking that green mortgages come at a premium price. In fact, according to the Intermediary Mortgage Lenders Association (IMLA), 74% of lenders have said they have, or plan to launch, green mortgages that are either cheaper or the same price as standard mortgages

With many lenders keen to support the initiative, there are opportunities to benefit from lower interest rates and even some cash incentives.

Why green mortgages matter to Skyline

As a business, we are becoming a sustainable mortgage practice. Green mortgages have been on our mind for some time, as we work hard to put sustainability first in our business processes, and our everyday lives. Green mortgages are just the beginning of our sustainable journey, and offering our clients the ability to reduce their carbon footprint during the property purchasing process is of huge importance to us.

Your home or property may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.