Green Mortgages

Green mortgages, devised to increase the appeal of owning a green property, are growing in popularity. This type of arrangement involves a lender offering preferential terms to a buyer if they can prove the property they’re buying meets environmental criteria.

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What is a green mortgage?

For those asking, ‘what are green mortgages?’, they’re products that incentivise buyers in the market for an energy-efficient property or at least one that incorporates approved eco-friendly practices.

Rewards can be financial, such as cashback, or in the form of preferential mortgage terms.

The objective of a green mortgage is to increase the volume of people considering a particular type of property to live in.
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Why choose UKMC for help finding a green mortgage?

Things to consider

What are the benefits?

Implementing energy-efficient features in your home can have a positive impact on the size of your energy bills. These types of homes can also qualify for reduced mortgage rates if they have outstanding energy performance. For example, if a home has a high Energy Performance Certificate (EPC) rating (typically A or B), the owner can qualify for lower rates. Not only that, cashback rewards are sometimes given to those who opt for a green mortgage.
By taking out a green mortgage, homeowners are supporting the idea of energy-efficiency. Not only does this contribute to increased awareness of environment-friendly choices, but it can also play a part preserving the planet.

What are the risks?

Although green mortgages in the UK can provide rewards to those making more environment- conscious decisions, lenders that offer these mortgages have no obligation to be “green” themselves. Despite that, the green mortgage initiative has been responsible for generating greater awareness about energy-efficiency and protecting the environment. To learn more about green mortgages and how UKMC can help, don’t hesitate to complete our call back form today.

Frequently asked questions

Lenders offer green mortgages to encourage environment-friendly decisions. By incentivising owners to have (or buy) energy-efficient homes and lower their carbon footprint, they contribute to sustainability.

Yes, you can switch to a green mortgage! If you’re buying an energy-efficient property or making eco-friendly improvements to your home, it’s possible to obtain a green mortgage.

HOW TO APPLY

01

Eligibility
check

Like most mortgages, there are criteria you must comply to be eligible to make an application.

For example, this type of mortgage is usually offered to applicants buying property with an EPC rating of A or B

The rules that apply to regular mortgage applications are relevant to green mortgages too; to ensure that you’re eligible, you’ll be expected to meet a lender’s normal mortgage affordability criteria.

02

Research lenders

As there are numerous lenders providing green mortgages, it’s important to compare them by looking at the interest rates and terms.

03

Making an application

You can apply for a green mortgage online, in branch or over the phone, just like a normal mortgage application.

04

Property appraisal

It may be necessary to have a home energy audit carried out if you’ve made significant improvements to make your house more energy-efficient. This will provide information on energy savings, and demonstrate the value of energy-efficiency measures. If you meet the relevant criteria, you should be approved to repay your mortgage on a monthly basis.

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