WHAT IS A GREEN MORTGAGE?

Did you know our homes qualify for a green mortgage?

Well, what exactly is a Green Mortgage? A green mortgage in the UK is a mortgage that offers buyers of energy-efficient homes favourable terms for this choice of property. Most often, lenders offer a lower rate of interest or cashback on green mortgages.

Does It Pay To Go Green?

The UK government has been encouraging mortgage lenders to develop green mortgage products since publishing its Clean Growth Strategy in 2017.

The idea was to develop cheaper mortgages which take account of the lower lending risk associated with more energy-efficient properties. Essentially, it would pay to be green.

Then in 2019, the government published the Green Finance Strategy, which promoted the adoption of green finance products and services, and pledged to unlock green mortgages for new build homes.

While there isn’t a universal definition of a green mortgage, this is generally how it works: lenders offering green mortgages either offer borrowers preferential terms if they buy an energy-efficient home, or if they commit to improving the efficiency of their current home.

There is now a growing number of lenders offering green mortgages – some specialist lenders and a couple of high street brands.

How Do I Get a Green Mortgage?

Eligibility criteria for a green mortgage varies from lender to lender, but the property’s Energy Performance Certificate (EPC) is typically a key factor and will need to be provided.

An EPC tells you how energy efficient a building is and gives the property a number of points between 0-100, which equates to a rating between A (highest) and a G (lowest). Scores of 81 or above qualify for an A or B rating.

The idea is that the EPC provides information about how costly the property will be to heat and light, and what its carbon dioxide emissions are likely to be.

Does a BoBen Home Qualify?

Our homes are extremely energy efficient, with predicted EPC ratings of 83 (out of a top score of 92+).

However, they are actually achieving on average a higher EPC rating of 85 once complete. Meeting the green mortgage criteria of a band rating A or B.

Find out more in this Rightmove article:

https://www.rightmove.co.uk/news/articles/property-news/what-is-a-green-mortgage