What are Green Mortgages
A Green mortgage is the same as a traditional one apart from being available only to those who have (or potentially have) an energy-efficient home. Typically, they offer an extra incentive to efficient homes, but it is essential to compare the best Green Mortgage against the best traditional mortgage – this is where we come in.
Energy Efficiency is a big word in the world of mortgages. The Government is heavily targeting mortgage lenders to offer favourable terms to those borrowers who are buying (or remortgaging) an energy-efficient home.
An Energy Performance Certificate (EPC) determines the efficiency of a property, one of these must be commissioned on every property sold (or rented). Realistically, if you are remortgaging, then it is likely that you have one of these and if you have made energy improvements, then you can re-commission an EPC in the hope that the efficiency is improved.
We can expertly advise if you would be accepted for a “Green Mortgage”. Complete the form opposite or call us, and we will do the rest. Alternatively, click here to give us more information, and we can send you a personalised illustration
Green Mortgages
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What Is a Green Mortgage?
Green mortgages are a mortgage option steadily gaining popularity among homeowners who want to reduce their environmental impact and save money. Buyers can benefit from lower monthly energy costs and long-term savings by investing in green features such as energy-efficient appliances, solar panels, and other eco-friendly upgrades.
Green mortgages allow buyers to access favourable terms, including reduced interest rates and extended loan periods, making them a more attractive alternative to traditional mortgages. Not only do green mortgages help homeowners reduce their carbon footprint and become more environmentally responsible, but they also help them to reap the rewards of home ownership. Green mortgages often offer access to grants and incentives that can help offset the initial cost of purchasing energy-efficient appliances or other sustainable upgrades.
An Energy Performance Certificate (EPC) conducted by a qualified assessor will show your property’s efficiency.
What Is an EPC Certificate?
An EPC certificate is a document that supplies an energy performance rating for buildings. It is required whenever a new building is constructed, or a current one is sold, let or renovated.
This certificate assesses the building’s energy efficiency on a scale of A (very efficient) to G (inefficient). It also provides recommendations to improve the energy performance of the building along with cost and other benefits.
The purpose of an EPC certificate is to help buyers, tenants, and owners identify how much it will cost to heat and light the property, as well as provide ways that homeowners can take to make their properties more energy-efficient. Companies can also use their EPC rating to meet corporate social responsibility commitments.
There is a public register of all EPCs conducted. You can access it here: www.gov.uk/find-energy-certificate
How Can an EPC Rating Affect My Future Mortgage?
An Energy Performance Certificate (EPC) rating will be a critical factor in deciding mortgage eligibility and loan terms as Government is targeting Lenders to ensure the UK’s housing stock become more sustainable.
The higher the EPC rating, the more energy-efficient a property is. This can lead to reduced mortgage rates as lenders reward properties with better energy efficiency ratings. This is known as a ‘green mortgage’ or ‘energy efficient mortgage’ and represents an incentive for borrowers to make the necessary improvements to their property to achieve a higher rating.
A higher EPC rating shows that the building meets minimum environmental standards and will cut the long-term running costs for its occupants. Lenders may also provide additional incentives such as free insulation or grant funding towards renewable energy installations, which can make it easier for borrowers to achieve a higher EPC rating. Improved energy efficiency can also increase the value of a home over time, making it more attractive to potential buyers in the future.
How Can I Improve the EPC Rating of My Property?
- Install high-efficiency air filters and ventilation systems: This reduces the number of dust particles, pollen, and other airborne contaminants. It also improves indoor air quality and helps reduce power consumption and electric bills.
- Upgrade existing insulation: Upgrading existing insulation can help reduce heat transfer into and out of the building, resulting in improved temperature control throughout the structure. This upgrade may also help increase energy efficiency by reducing the need for additional cooling or heating during peak usage.
- Go solar: Installing a solar panel system may reduce energy costs while supplying green energy solutions to improve overall energy efficiency ratings.
- Replace outdated lighting systems: Replacing outdated lighting fixtures with more efficient models can drastically reduce electricity use throughout a facility. LED bulbs are much more efficient than incandescent or fluorescent bulbs and can last up to 25 times longer.
- Invest in smart thermostats: Smart thermostats allow users to adjust temperatures based on their preferences and daily schedules, ensuring that temperatures remain consistent and efficient. These thermostats also provide detailed analytics about performance giving users an idea of where to make improvements for better efficiency.
- Implement window treatments: Using window treatments such as shutters, blinds, or curtains helps block out sunlight while also maintaining interior temperatures at comfortable levels. Window coverings can also help insulate buildings from outside temperatures while allowing natural light inside.
Why Should I Embrace Energy Efficiency and Climate Change?
Being realistic, our future Governments across the world have to take action. The easiest way to educate is to make those who will not adapt pay for it. The Government is lobbying mortgage lenders right now to coerce them to offer enhanced products for those who reduce their carbon footprint. We suspect it is only a matter of time before Council Tax and Business Rates will be rated on the energy efficiency of each property.
Energy efficiency is an essential part of fighting climate change. By adopting energy-efficient practices, such as insulation, efficient lighting and appliances, and renewable energy sources, individuals and businesses can reduce their emissions of greenhouse gases that contribute to global warming. As we strive to keep a healthy planet, reducing our dependence on fossil fuels and strengthening our commitment to energy efficiency are essential.
Climate change is having devastating effects on many ecosystems across the world, from ocean acidification to changes in species composition. To help mitigate these changes, reducing energy use needs to be a priority for both individuals and businesses. Taking essential steps to reduce your carbon footprint and conscientious effort to become more energy-efficient are key components to improving energy efficiency and tackling climate change.
So, How Can a Mortgage Broker Help Me with Green Mortgage?
How we advise on mortgages is changing, and we are embracing it. It will only be a matter of time before we ask for your EPC before we can advise on the most favourable mortgage terms for you. Therefore, our finger is on the pulse now, and we know what lenders offer. This may only suit you if you have an EPC rated as ‘A’ or ‘B’, but it nevertheless forms part of our advice process. When we advise you, we will look at all types of mortgages, whether it be Green or traditional. You will only get this level of advice through an Independent Mortgage Broker. We advice on all type of mortgages so click here and check out the other types we can help you with