If you are looking to arrange a mortgage, or even remortgage your existing property, it makes sense to look for the best possible deal. While the mortgage on offer is closely linked to your finances and credit history, there are other factors that can influence the mortgage provided by a lender. Green mortgages are an example of an improved mortgage offer made available to certain applicants.
What is a green mortgage?
With a green mortgage, the lender provides the property buyer with a more attractive rate if they can prove the property has a positive Energy Performance Certificate (EPC) rating. Sometimes, the lender will offer a cash back incentive as opposed to a lower mortgage rate, but the principal of green mortgages is that they should make buying a home more affordable due to the more environmentally friendly nature of the property.
Are green mortgage deals available for remortgage deals?
Yes, and the same principle applies. If the homeowner can show their property meets an expected standard of EPC, or that they intend to renovate the property which will increase the EPC rating, a lender can provide a more attractive rate of remortgage offer.
Examples of green mortgages in action
Thankfully, green mortgages are simple in practice, and some leading names in the UK financial sector already offer green mortgages to their clients.
Barclays offer The Barclays Green Home Mortgage when new-build properties carry an EPC rating of A or B. It is possible for buyers to borrow up to 75% Loan-To-Value (LTV) when the criteria is met.
NatWest also offer a Green Mortgage, and this is available for new-build property and existing homes, as long as the property’s EPC rating is A or B. NatWest allows buyers to borrow up to 85% LTV and there is a £250 cashback available.
However, this is just a small snapshot of what is available with respect to green mortgages, and as you would expect, the market is changing all the time. Other lenders who are yet to provide a green mortgage offering are tipped to do so soon, so it is worthwhile liaising with a broker to find the latest deals.
You will also find there are some brokers who specialise in this style of mortgage, which means working with a specialist will help you find the best possible mortgage offer.
With environmentally friendly matters a key issue for many people, couples and households, this style of mortgage makes sense. If you naturally want to have a green home, you might find it lowers the cost of your mortgage every month.
How to explore your mortgage options with The Money Hub
You know what a green mortgage is, but if you don’t devote the time or energy to finding the best deal, you might miss on great value. Thankfully, help is at hand.
Call The Moneyhub Limited on 0203 725 5830 and speak to one of our highly specialised and dedicated Mortgage Advisors or you can complete an enquiry form which will allow you to schedule a call time.
DISCLAIMER: These articles are for information only and should not be construed as advice. You should always seek advice prior to taking any action.