Whether you’re buying a property that has a high energy performance rating or you’re improving the efficiency of the home you’re in, a sustainable mortgage offers lower interest rates as an incentive.
Green mortgages have appeared on the market thanks to the government’s pledge to meet the net zero carbon target in the UK by 2050. They’re designed to encourage people to buy energy-efficient homes, or upgrade the ones they’re already in.
From installing solar panels or loft and wall cavity insulation, to upgrading windows and heating systems making them more energy efficient. A green mortgage offers a lower interest rate for people who are purchasing a home with a high EPC rating, or one in which they are committed to doing the work.
If you like the idea of supporting the country’s climate pledge and doing your bit for the planet, let’s talk about the sustainable options that might be available to you.
Your home may be repossessed if you do not keep up repayments on your mortgage.
There may be a fee for mortgage advice. The actual amount you pay will depend on your circumstances. The fee is up to 1% but a typical fee is £549.
There are two main types of green mortgage:
(1.) You live in or want to buy an energy-efficient home.
Energy efficiency is generally defined by the Energy Performance Certificate (EPC) rating of the home. In order to qualify for a green mortgage most lenders require an EPC rating of A or B, although some will go as low as C.
(2.) You want to make your home more energy efficient.
You could increase efficiency by installing solar panels, upgrading the heating system, insulating the house or installing double glazing. Lenders will generally require evidence of the work carried out (that meets a predefined list), an EPC certificate or an energy performance assessment from a builder.
Your home may be repossessed if you do not keep up repayments on your mortgage.
There may be a fee for mortgage advice. The actual amount you pay will depend on your circumstances. The fee is up to 1% but a typical fee is £549.
An Energy Performance Certificate (EPC) will inform you how energy efficient a building is, it does this by scoring the property 0-100. The score equates to a rating between A (most energy efficient) and a G (least energy efficient). You need a score of 81 or above to fall into categories A or B.
What landlords need to know about EPCs and green mortgages
By 2025 all rental properties must have an EPC rating of C or better.
How do I get an EPC rating?
Buying or selling your home: Energy Performance Certificates – GOV.UK (www.gov.uk)
What is the EPC rating on my home?
You can find out your property’s EPC rating by visiting the YouGov website here: What type of property is the certificate for? – Find an energy certificate – GOV.UK (find-energy-certificate.service.gov.uk)
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If you want to learn how to buy your first home with a small deposit, then you’re in the right place! We’ll walk you through your available options and next steps necessary to get your feet on the housing ladder. If you’ve been on the same mortgage deal for a while and have built up some equity in your current property, it might be worth looking at your remortgaging options.
If you are looking to remortgage, don’t assume you need to wait until the end of your current deal before you can start the process. If your mortgage is due in the next 6 months, or if you are concerned about rising interest rates, why not speak to one of our mortgage experts here? We can help determine if remortgaging is beneficial for you.
With mortgage rates on the rise, you might be starting to wonder whether there is a way you can get on top of your mortgage repayments and keep future payments at a manageable level. And making the decision to exit your current deal and remortgage early may be one way to do this.
Our mortgage borrowing calculator will provide you with an approximation of how much you’re likely to be able to borrow. Mortgage affordability is subject to lots of different things, such as your credit history, monthly outgoings and deposit, and it can also vary from lender to lender.
Your home may be repossessed if you do not keep up repayments on your mortgage.
There may be a fee for mortgage advice. The actual amount you pay will depend on your circumstances. The fee is up to 1% but a typical fee is £549.
