The benefits of a 'Green' Mortgage

Home buyers could benefit from cheaper rates and cashback incentives by taking out a ‘Green’ Mortgage deal.

What is a Green Mortgage?

Green mortgages are mortgage deals available to people who buy environmentally friendly homes or make energy-efficient home improvements to their property. Green mortgages may offer a discounted interest rate when you buy a property that conforms to a specific energy standard. For example, if the property you want to buy achieves an energy rating of A or B. They are most commonly available on new-build homes, but they can also be available for properties that have been renovated to meet high-efficiency standards.

How do green mortgages work?

There are three main types of green mortgages:

Deals that offer a lower rate on properties with a specific energy rating.
Standard mortgages offer cashback to people who buy energy-efficient properties.
Mortgages that offer cheaper rates or cashback when people make green home improvements.

What is an energy performance rating (EPC)?

EPCs grade the energy performance of a property. They provide a current and potential score out of 100. The score is used to give a grade of between A and G. EPCs last 10 years and an up-to-date EPC must be provided when properties are marketed for sale.

For more information on how you can improve the energy efficiency of your home visit: Energy Saving Trust

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