What is a green mortgage?

A ‘Green Mortgage’ is one that rewards someone for buying or owning an energy-efficient home by offering them more favourable terms than come as standard. Currently, that typically means either getting a slightly lower interest rate, or cashback when you take out the mortgage, or both.

Who offers green mortgages?

Green mortgages are offered by some UK lenders, to encourage homeowners to buy energy-efficient and environmentally friendly homes.

Green mortgages are available on energy efficient new homes because they may cost less to run due to decreased utility bills. This could mean that the borrower is in a better financial position to be able to repay their loan.

Speak to an expert today, and find out if you are eligible

Does my home qualify?

You will need to provide evidence of your property’s energy performance certificate (EPC) rating. This states how energy efficient your property is, with ratings between A, the highest, and G, the lowest. Green mortgages tend to be offered on properties rating as A or B, while some may consider a C.

Why do we need green mortgages?

The UK has signed up to the Paris Agreement to limit global warming to 1.5°C. As a nation we’re aiming to reach net zero emissions by 2050 (in Scotland it’s 2045). As around 14 per cent of the UK’s carbon emissions come from heating homes, it has become a priority for house builders and house buyers to improve the energy efficiency ratings of residential properties.

“We used Prospect Tree to renew our mortgage. They were extremely helpful and prompt in responding. The whole process was completed extremely quickly”.