Are you looking for a way to save money on your mortgage and help the environment at the same time? A green mortgage may be the answer. Green mortgages are designed to encourage borrowers to make environmentally friendly improvements to their homes that can save energy and lower utility bills.

In some cases, the interest rate on a green mortgage may be lower than a traditional mortgage. If you’re interested in learning more about green mortgages, read on for everything you need to know.

Why should I get a green mortgage?

Getting a green mortgage is an excellent way to invest in your home and the environment.

Green mortgages allow you to reduce your environmental impact by investing in energy efficient technologies and materials that reduce your energy consumption and its associated costs.

For example, if you upgrade to a higher efficiency boiler or purchase solar panels for your roof, you could unlock savings of up to 25-40%, depending on utility rates. Additionally, you could be eligible for tax credits or other government incentives that further reduce overall costs.

Making these upgrades with a green mortgage also ensures that future buyers can enjoy the cost savings of their eco-friendly investment when they become the new owners.

Overall, green mortgages make good financial sense while helping preserve our planet’s future – so why not get one today?

Are green mortgages cheaper?

A green mortgage offers more than just environmental benefits – they can also help home buyers save money.

Green mortgages are available across the nation, and they often come with advantages such as reduced monthly payments, and incentives that encourage borrowers to purchase a more energy efficient home.

What’s more, some lenders may even offer cheaper interest rates when choosing a green mortgage. Additionally, some governments provide credits and other incentives to homeowners applying for green mortgages which further reduces their costs.

All in all, opting for a green mortgage can be cheaper than traditional loan options and help you save money while making an eco-friendly choice.

Green mortgage lenders

Lenders that we are aware that currently offer green mortgages are:

• Nationwide
• Barclays
• NatWest
• TSB
• Virgin Money

Other non-high street lenders and building societies offering green mortgages?

• Kensington Building Society
• Monmouthshire Building Society
• Saffron Building Society
• Swansea Building Society
• Gatehouse Bank

Most of the above lenders will require the property to have an EPC rating of B or A. 

Is an eco mortgage the same as a green mortgage?

No. An eco mortgage is a type of green loan which is used to finance the cost of renewable energy home improvements, such as solar panels and wind turbines. It’s typically offered at a preferential interest rate, with no penalties for early repayment if you decide to switch lender in the future.

A green mortgage, on the other hand, offers preferential rates for properties that have a high EPC rating. Both types of mortgage can help you save money on your monthly bills and be kinder to the environment in the long run.

How much does it cost to make an old home more energy efficient?

The cost of making an old home energy efficient will depend on the size and age of your property, as well as the type of improvements you want to make.

Generally speaking, you can expect to spend between £2,000 and £6,000 depending on the scale of the works.

Common improvements include insulation, draught-proofing, double glazing, and installing energy efficient boilers. Solar panels in particular, will give the property a good epc rating.

Can I get help with funding for green home improvements?

Possibly – a good place to start would be going to the energysavingstrust website where you can find more information on grants that are available to improve your homes energy efficiency.

Energy efficiency ratings explained energy

Energy efficiency ratings are based on the Energy Performance Certificate (EPC) which assesses the energy efficiency of a property.

The EPC rates a home’s energy efficiency from A to G, where A is the most efficient and G is the least efficient.

To produce a rating for the property, a qualified domestic assessor gathers data from the property about:

• The type of construction
• Dimension of the property
• Heating & Controls
• Lighting
• Glazing
• Levels of insulation

The data is colated into approved software that calculates the energy rating of the property.

An energy performance certificate can help you understand how much it costs to heat your home and how much money you could save by making improvements. In theory, the higher the EPC rating of your property, the lower your bills should be. It’s therefore worth improving the property’s epc rating if considering taking out a green mortgage.

SUMMARY

In summary, green mortgages offer preferential interest rates to homebuyers and remortgagers who are looking to make energy-efficiency improvements to their property. Some lenders also offer cashback and other rewards for making these improvements.

It’s worth researching the different offers on the market, as you may be able to save money both in terms of the interest rate and your monthly bills by taking out a green mortgage.