Green Mortgages
A green mortgage is designed to help increase the appeal of owning a sustainable, green property. Whether you are purchasing or remortgaging a property, if it has an EPC rating of A – C you may be eligible for a more attractive % rate, a cashback offer, or more favourable terms.*
In the past, it may have been challenging to find a lender wanting to provide you with preferential treatment based on your energy performance certificate (EPC), many highstreet, mainstream and specialist lenders now provide their own versions of a green mortgage.
With the impending EPC changes coming in 2025 and 2028, lenders are already offering attractive incentives on ‘Green’ mortgage products to property investors. These benefits should encourage landlords to bring their properties EPC rating up to the minimum standard before the initial deadline.
What qualifies for a green mortgage?
There are typically two categories for green mortgages:
- A green mortgage which rewards you for living in an energy efficient property. If your home has an EPC rating of A or B, you may be eligible for cashback or a better interest rate on your mortgage. This type of mortgage is available for homebuyers and sometimes remortgagers.
- A green mortgage which rewards you for carrying out sustainable and efficient improvements to your home. This could include replacing single-glazed windows, upgrading your heating system, or installing solar panels. Lenders may offer you a discounted interest rate or cashback on money you borrow to upgrade your efficiency.
These offers are available as lenders are increasingly viewing energy-efficient properties as less risky purchases in the era of climate change, and more likely to hold their value. Additionally, if a homeowner is paying less on their energy bills each month there’s less chance they will miss their mortgage repayments.
Energy performance certificates
An energy performance certificate (EPC) is a document which details how energy efficient a property is. They are required whenever a property is built, bought, or sold, and each certificate is valid for 10 years.
The rating system goes from A to G, with A being the most energy efficient rating available. Older properties typically have worse EPC ratings in comparison to new build properties, with estimates stating that just 10% of pre-1900 homes have a C rating or better.
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Why is a property EPC rating so important?
Fines of up to £30,000 have been purported for any BTL properties that do not meet the minimum EPC rating of C by the deadline. In addition when refinancing it could mean that mortgage rates available are not as favourable as those for A – C EPC rated properties.
Our whole of market status means that not only do we have access to typical high street banks, we also enjoy established relationships with specialist lenders.
More Green Mortgage Choice
Our independent team of advisers at Vincent Burch Mortgage Services have access to the best green mortgage rates on the market whether operating in a limited company, or your own personal name, all from a range of specialist lenders.
Which mainstream lenders offer green mortgages?
The pool of high street mortgage lenders offering green mortgages is quite small, and their offers vary. Recognisable names offering green mortgages include Nationwide, Barclays, Halifax, NatWest, and Virgin Money.
There are a few specialist lenders which offer green mortgages and these include Kensington Mortgages, Saffron Building Society, Swansea Building Society, and Gatehouse Bank.
Vincent Burch is a whole of market mortgage broker, meaning we search the entire market to find you the most suitable mortgage deal. So, where there’s a suitable green mortgage for you – we’ll be able to find it!
Are green mortgages the best rate available?
The idea of a green mortgage is great, however in reality they aren’t always the cheapest or most suitable mortgage deal for you.
It may be that any preferential interest rate and/or cash back offers which come with a green mortgage could make the deal cheaper overall in comparison to a non-green deal from the same lender, however, there are only a small number of green mortgage deals offered by high street lenders that can’t be beaten in interest rate by standard mortgages.
As whole of market specialists, we’re able to search the entire market on your behalf to find the most suitable deal – green or otherwise.
Why is a property EPC rating so important?
Fines of up to £30,000 have been purported for any BTL properties that do not meet the minimum EPC rating of C by the deadline. In addition when refinancing it could mean that mortgage rates available are not as favourable as those for A – C EPC rated properties.
Our whole of market status means that not only do we have access to typical high street banks, we also enjoy established relationships with specialist lenders.