In July, the Government has announced plans to work with mortgage lenders to develop ‘green mortgages’ for those who are looking to purchase homes.
Here, we go into detail about exactly what a green mortgage is, when you can expect to see them introduced and the benefits of having one over a typical mortgage,
What is a green mortgage?
Green mortgages are a new incentive that the UK Government is trying to introduce for homeowners. These mortgages would be based on either:
- you purchasing a home that is already very energy efficient
- for those who have improved the energy efficiency of their current property
The main idea behind the scheme is to encourage homeowners to make their properties more energy efficient, therefore reducing the carbon emissions from households across the UK.
According to Government data, homes are accountable for 15% of the UK’s carbon emissions, so introducing schemes like this will hopefully help to reduce the amount of wasted energy from homes.
What do Government plans say?
The UK Government is currently working with the financial sector and has created a £5 million fund to help them develop green home finance products, such as green mortgages.
Homeowners would receive discounted mortgage rates for having a high energy rating, which means their home is extremely efficient. This includes whether they buy a new build with a high EPC to start with, or work hard to upgrade the current energy rating of a property.
When will they be introduced?
When they will be introduced depends on financial lenders having the capacity to offer them, so there is no exact date. However some lenders have started introducing them already, but they only offer them to those who meet strict criteria at the moment.
If you’re interested in getting a green mortgage, it is worth speaking to your lender to see if they offer this option, or if they are going to be offering it.
Benefits of green mortgages
- Favourable rates
- Lower energy bills
The main benefit of green mortgages is that lenders will be offering favourable rates to those with energy efficient properties. This means you can potentially save a lot on your monthly payments.
By having an energy efficient property, there are also a lot of other benefits, such as lower energy bills and, if you have renewable energy sources such as solar panels installed, the potential to sell excess energy back to the grid for money.
Improving the energy efficiency of your property is a great way to cut your carbon emissions and will help towards the Government’s emissions targets and will help to save the planet. In the long term, it may even make your home more appealing to potential buyers.
How to upgrade your EPC rating
The best way to find out the areas that need improving in your home is to have tests done. Tests such as air tightness testing and thermographic testing allow you to see where heat and air is being lost throughout your home and then make the necessary improvements to get a higher EPC rating.
As well as this, there are a few quick and easy ways to improve the energy efficiency of your property:
- Use energy efficient LED bulbs
- Install double glazed windows
- Insulate your hot water tank
- Replace your boiler
- Use thermostatic valves on radiators
- Add renewable energy sources such as solar panels
Get in touch
If you’re interested in improving the EPC of your property in order to secure a green mortgage, or would like to know more about our services, get in touch with our team on 01403 253439 and we would be happy to help.