WHAT IS A GREEN MORTGAGE?
Did You Know Our Homes Qualify for a Green Mortgage?
A green mortgage in the UK is a type of mortgage that rewards buyers of energy-efficient homes with favourable terms, typically lower interest rates or cashback incentives. It’s a way for lenders to support sustainable living while offering financial benefits to eco-conscious buyers.
Does It Pay to Go Green?
Yes, it can! The UK government has been encouraging the development of green mortgage products since the launch of its Clean Growth Strategy in 2017. The idea was simple: homes that are more energy-efficient pose a lower lending risk, so it should cost less to finance them.
In 2019, the government followed up with the Green Finance Strategy, which promoted the adoption of green financial products and aimed to unlock green mortgage options for new-build homes.
While there’s no single definition of a green mortgage, most lenders offer:
- Preferential terms for buyers of energy-efficient homes, or
- Incentives for homeowners who commit to improving their property’s energy performance.
Today, a growing number of lenders—including both specialist providers and high street banks—offer green mortgage products.
How Do I Qualify for a Green Mortgage?
Eligibility criteria vary by lender, but a key requirement is the property’s Energy Performance Certificate (EPC) rating.
An EPC measures how energy-efficient a building is, scoring it from 0 to 100 and assigning a rating from A (most efficient) to G (least efficient). Properties with a score of 81 or above typically qualify for an A or B rating, which is often the threshold for green mortgage eligibility.
The EPC also provides insights into the cost of heating and lighting the property, as well as its estimated carbon emissions.
Do BoBen Homes Qualify?
Yes! BoBen homes are designed with energy efficiency in mind. Our homes have a predicted EPC rating of 83, and once completed, they’re averaging an even higher rating of 85—comfortably within the A or B band required for green mortgage eligibility.
This means our homes not only help reduce your environmental footprint but could also save you money through green mortgage benefits.
Learn More
For more information, check out this helpful article from Rightmove: