Green Mortgages: What are they, and do I need one?

worms eyeview of green trees

Why do we need Green Mortgages?

Housing in the United Kingdom is said to be responsible for 23% of the country’s total greenhouse gas emissions. Couple this with Government data which suggests 60% of homes in the UK are currently rated band D or worse for their energy efficiency and a bleak image emerges.

Thankfully, it isn’t a problem which we are unaware of, and commitment is coming from parliament to make the UK carbon neutral by 2050. Changes can also be seen in the rental sector where all newly rented properties will be required to have a C rated or above by law by 2025.

How do green mortgages help the environment?

A ‘Green Mortgage’ is one that rewards someone for buying, owning, or making their current property more energy efficient. If your home qualifies then you may be able to get slightly lower interest rates, cash-back or both as a reward for your environmentally friendly decisions.  

They help the environment by making it more appealing to purchase or create an energy efficient home.

Can I get a Green Mortgage?

If your home qualifies, then yes! You will need to provide evidence of your properties energy performance by providing an EPC certificate. Green mortgages tend to be offered to those who’s property is ranked A or B, sometimes C.

Is a Green Mortgage the best Mortgage for me?

At present, not all lenders are offering green mortgages. For this reason, you should first find the best suited lender for your unique circumstances. Depending on your situation and goals, you may decide a green mortgage is the best product for you.

The best thing to do is speak to an expert about your own circumstances. Fill in the form below and one of our friendly team will be in touch with you soon.

Prospect Tree Mortgages are planting trees to grow our own forest to help in the fight against climate change. We will plant a tree for every new customer who enquires with us about their mortgage.

We plant trees with Ecologi

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