Green mortgages – what you need to know

In response to the climate emergency, the UK government has passed laws committing to becoming a net-zero carbon emissions economy by 2050. Measures as part of these environmental commitments include improving the energy efficiency of 17 million homes across the UK, essentially creating cosier, healthier and more energy-efficient homes.

With record-breaking protests and global declarations of a climate emergency, it has become critical that we do all we can to adapt to climate change and reduce our carbon footprint, including that of our homes.

Making your home a cosier home (as demonstrated by these retrofit journeys here) not only carries obvious benefits for your family’s comfort but can also have big benefits for your pocket from the very start, if you choose a green mortgage.

So what is a green mortgage?

Green mortgages give you discounted mortgage rates once you upgrade the overall energy rating of your home. 

It’s one way that the UK government is encouraging homeowners to improve home energy efficiency and save money on their energy bills. Green mortgages are an incentive to homeowners to reduce emissions and support global efforts to move towards a cleaner and greener economy. 

Why sign up for a green mortgage?

As such, green mortgages could see three-fold benefits for you as they could reduce your mortgage rate, energy bills as well as your home’s carbon emissions.

To help deliver these green mortgages, the government has announced a £5 million Green Home Finance innovation fund that will facilitate the financial industry to bring more ‘environmentally-friendly’ mortgage loans to market.

Green Mortgages - what you need to know

Who is eligible for a green mortgage?

Eligibility for a green mortgage varies from lender to lender, however all lenders will require the property you wish to purchase to have a high energy efficiency rating on its Energy Performance Certificate (EPC) to qualify for a lower rate mortgage. Your eligibility for a green mortgage depends on this.

What is an EPC?

Every home must have an EPC when it is built, sold or rented. An EPC calculates the estimated energy demand for regulated energy (heating, hot water and lighting) per square metre and gives your property an energy efficiency rating from A or 100 (most efficient) to G or 0 (least efficient) and is valid for 10 years. Estate agents and solicitors routinely arrange for domestic EPCs to be produced.

Want to improve the EPC rating of your home?

As home retrofit specialists, Cosy Homes Oxfordshire can guide you through the process of achieving a better EPC rating for your home through our ‘Whole House Plan’ and ‘Whole House Retrofit’ service. We can also help you with other installations around your home from insulation to heating and renewable energy systems. Register your home with us today to find out how.

As the UK gears up to respond to the climate emergency, homeowners across the country can do their bit by making the most of financial products like the green mortgage. This will increase access to warm and comfortable energy-efficient homes and help support making greener choices. 

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