Could you protect the planet while saving money on your mortgage?


Fancy doing your bit to protect the environment and save money on your mortgage? Then a green mortgage may be for you.

Homes are responsible for 15% of the UK’s carbon emissions so you may not be surprised to hear that environmentally friendly mortgages have hit the market.

A small number of lenders are already offering discounted mortgage rates if you improve the energy rating of your home.

And green mortgages could be about to become mainstream.

What’s happened?

This week the Government pledged £5 million to help the financial sector develop green mortgages.

The Green Home Finance Innovation Fund, part of the Government’s Green Finance Strategy, will help the financial sector develop green home finance products, like green mortgages.

Energy and Clean Growth Minister Chris Skidmore said: “By rolling out more green mortgages, and reducing the costs of retrofitting older homes, we’re encouraging homeowners to improve the efficiency of their homes and save money on their energy bills...”

Can I get a green mortgage?

You could be eligible for a green mortgage by upgrading the energy efficiency of your current home or by buying one that’s already environmentally friendly.

You’ll need an Energy Performance Certificate showing that your home has an energy efficiency rating of 81 or above, or is in energy efficiency bands A or B. 

If your home isn’t built yet, you’ll need a Predicted Energy Performance Certificate.

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Bear in mind

Your home could be repossessed if you don't keep up repayments on your mortgage.

You may have to pay an early repayment charge to your existing lender if you remortgage.

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