What is a Green Mortgage?

1st March 2023

What is a Green Mortgage?

We know the importance of looking after our planet and we love to make small changes that make a big difference.

Switching from plastic straws to metal, reusable coffee cups and bags for life are common swaps, but what about mortgages? Is a Green Mortgage any good?

So, what is a Green Mortgage?

Green Mortgages tend to come in two varieties. One is for those who own a green property (EPC rating of A or B), receiving better terms than standard. The other is for people who are going to carry out lots of ‘green’ home improvements (such as replacing windows, adding solar panels etc). They usually get rewarded for carrying out the improvements, either with a discounted interest rate, or cashback on money borrowed for that purpose.

Why are Green Mortgages on Offer?

Houses that have these energy efficiencies are considered as less risky purchases that hold their value, also the reduced energy bills mean that as a homeowner you’ll be more likely to be able to make the mortgage payments every month.

So is the Mortgage Environmentally Friendly?

Not particularly. It’s the same as every other mortgage, and the bank may still be investing the money into fossil fuels. It’s more about the house itself being more environmentally friendly, and providing an incentive for this by giving you better terms than standard.

Do I Qualify for a Green Mortgage?

Obviously we can’t answer that question in a blog post, but if you need help getting an Energy Performance Certificate that’s something we can do, so be sure to get in touch. There are many lenders offering Green Mortgages now, and if you’re interested this is definitely something we can look into with you.

Call us now on 0330 332 2614

to speak to a member of our experienced and qualified financial advisers

Call us now on 0330 332 2614

to speak to a member of our experienced and qualified financial advisers


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Housing, Mortgages