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What are Green Mortgages? And how many lenders provide them?

Aaron Strutt Image

There has been an increase in the number of lenders providing Green Mortgages or incentives to buy energy-efficient homes. 

Most homes sold in the UK need an Energy Performance Certificate (EPC) to show how energy efficient, or green, the property is. Each property is given a score - the higher the number, the more energy-efficient the property.  

As pressure increases on homes to be more energy-efficient, mortgage lenders either provide better mortgage rates or cash back when they purchase better-insulated homes.  

More of the larger mortgage lenders like Barclays, Leeds Building Society, NatWest, Virgin Money, and Kensington reward borrowers for buying greener properties.  

Nationwide has a Green Reward offer, where you could get up to £500 cashback when you buy an energy-efficient home. The lender provides £500 cashback for a property with a score of 92 or above. It reduces to £250 cashback for a property with a score of 86 to 91. 

Aaron Strutt, product director at Trinity Financial, says: “The number of lenders requiring properties to meet the minimum energy rating to be accepted for a mortgage application will increase over the next few years. At the moment, there have not been enough incentives in the mortgage market for borrowers to specifically call and ask for one of the Green Mortgages, but this is changing.  

“Homebuyers want to know how much they can borrow and what the cheapest deal is they can get. Adding the EPC rating in is certainly an extra complication, but it will be a standard question moving forward.”   

NatWest has some particularly cheap Green Mortgages undercutting the rest of this limited market. The Mortgage Works only provide buy-to-let let mortgages over 75% loan-to-value for properties with an EPC rating of A, B or C at application. 

You can check the latest EPC rating on your property using this link.

Call Trinity Financial on 020 7016 0790 to secure a Green Mortgage or book a consultation 

As seen in
sunday times telegraph financial times bbc news the express the times
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