24 May 2021
Have you heard about green mortgages? They are fast becoming an increasingly popular option in the mortgage world, offering environmentally conscious buyers a viable option when it comes to purchasing their homes (and hopefully save themselves a little money too).
Green mortgages encourage buyers to go for homes that rate highly when it comes to their Energy Performance Certificate (EPC). Each home will be subject to an inspection before being given a score based on several factors, such as the size, the construction type, and the insulation present. The higher the score, the ‘greener’ your home is considered, helping you to save energy and help the environment whilst going about your daily duties.
So why would a buyer choose a green mortgage over a more standard offering? These mortgages offer a range of benefits as an incentive to choose a more environmentally sustainable home. With many of us now becoming more aware of our impact on the environment, this is a way for the property market to try and help. These include lower interest rates, greater choice when it comes to the amount you want to borrow, cashback or even access to money off deals. Green mortgages are also available for both home buyers and landlords, and help the market remain competitive when it comes to product offerings.
Very often, new-build properties are developed with a strong focus on the environment and reducing the carbon footprint of the individual(s) living there. These factors make new- builds an ideal candidate for green mortgages. However, if you’ve got your eye on an existing property, a green mortgage may give you the option to make it more environmentally friendly… think along the lines of assistance when it comes to the installation of double glazing or insulation.
The good news is that nowadays, lots of the bigger, well-known lenders are now offering green mortgages as a matter of course, with recent research suggesting there are now over 25 deals to choose from. It may surprise you to know however that green mortgages have actually been around for a few years now, first launching in 2018. However, it’s in more recent times that they have really started to gain a foothold in the market, and we have a feeling they’re here to stay.
Of course, it’s important to make sure that whatever mortgage you choose is the right one for you and your circumstances. Our team have access to a comprehensive panel of lenders, meaning we’ll be able to advise you on a wide range of products. Whilst green mortgages undoubtedly offer the homebuyer more choice, it is possible that a better product could be found on a more traditional mortgage. We can help talk you through it, weighing up all the pros and cons and can then work with you for the duration of the application process too.
To get in touch with one of the team, just send us a message. You can also get all the latest mortgage and protection news direct from our Facebook page – why not take a look?