The Growing Role of Green Mortgages in 2023.

Green mortgages: 

Green mortgages are becoming increasingly more popular in the UK because they can help to fund the purchase of energy-efficient homes or refinance homes to help make carbon emission reductions by improving the energy efficiency of homes.

The UK government has set a target of reaching net zero carbon emissions by 2050, and green mortgages can play a vital role in helping to achieve this goal.

There are now several high street lenders offering incentives to take out one of their green mortgage arrangements and it’s likely more will start to offer them in the future. There is also a growing number of non-high street lenders who have seen the opportunity and offering their versions of a green mortgage.

So, what is a Green Mortgage?

In short, there is nothing particularly green about the actual mortgage itself, but if you are looking at ways you can help both the planet and your home, then funding your purchase or refinancing with a green mortgage could be your answer.

As conscientious homeowners ourselves, we’re always on the lookout for ways to help save our household energy. For example; switching lights off, taking a shower rather than a bath, avoiding using the tumble dryer on days when the washing can be put outside to dry. Like many households, we’ve changed our habits over the last few years. A green mortgage could be your next step.

There are a number of benefits to taking out a green mortgage.

These include:

Lower interest rates:

Many lenders offer green mortgages with lower interest rates than standard mortgages. This is because they are less risky for lenders, as energy efficient homes tend to have lower energy bills and are therefore more likely to be affordable and attractive to future borrowers.

Cashback:

Some lenders offer cashback incentives to borrowers who take out a green mortgage. This can be a significant amount of money and can help to offset the cost of making energy efficiency improvements to a home.

Cheaper borrowing rates for improvements:

Some lenders offer cheaper borrowing rates for borrowers who want to make energy efficiency improvements to their homes. This can help to make these improvements more affordable.

Lower energy bills:

Energy efficient homes use less energy, which means that borrowers can save money on their energy bills. This can save them hundreds or even thousands of pounds per year.

Reduced carbon footprint:

Energy efficient homes produce less carbon emissions than less efficient homes. This can help to reduce the UK’s overall carbon emissions and contribute to the fight against climate change.

In summary:

Green, or eco, mortgages can reward you for saving energy at home. That could mean buying an eco-friendly house, or by making energy-saving improvements to your current home. A win-win for the planet and for your household.

If you are considering buying a home or remortgaging, it is worth considering a green mortgage. Contact us at Buckingham James for more information and to discuss your mortgage requirements and options available.

We will be featuring more helpful tips over the coming months – so stay tuned!