“A lot of mainstream lenders, including NatWest, Barclays and TSB are now using Green Mortgage deals to give people an incentive to buy more energy efficient homes,” says Grant Thoms, First Mortgage’s Senior Relationship Manager.
Grant explains that the main benefit that Green Mortgages provide is that they tend to offer a better rate of interest than standard mortgages. “We’re seeing people benefitting to the tune of about £30 to £40 a month,” Grant says. It’s not a massive amount of money, but over time it will add up and, given the cost of living crisis, every little helps.”
Grant also points out that, because an energy efficient home is much more cost-effective to run than older properties, buying one with a Green Mortgage gives a double hit of savings – first reduced mortgage payments and second reduced heating and lighting costs.
Most Green Mortgages are available to anyone over 18 purchasing a home with a valid Energy Performance Certificate (EPC) rating of A or B. An EPC is an official document that gives an overall rating of a property’s energy efficiency.
According to Grant the criteria that are used to decide who qualifies for a low-interest Green Mortgage play into the hands of anyone looking to buy a new-build property.
“As they are built to the latest building regulations and are generally much more energy efficient than older properties, new-builds commonly have a good EPC rating, normally B or better,” Grant says. “They therefore tend to qualify for Green Mortgage deals. We’ve already seen a number of clients purchasing a new Dundas home with a Green Mortgage.”
New build homes, like those built by Dundas, tick all the EPC boxes: they are fully insulated, double-glazed, and come with energy-saving features such as energy efficient lights, highly efficient boilers and solar panels “Green Mortgages have been developed primarily in response to the government’s efforts to make the country’s housing stock as eco-friendly as possible,” Grant explains. “To secure a Green Mortgage for a property, the lender will want to see a copy of the home’s EPC, so it’s really no more difficult to apply for than a normal mortgage. In general, we always try and get the best deal for the client and in many cases the Green Mortgages are now coming through as the best deal. So, I’d say they are definitely worth checking out.”
To find out more about Green Mortgages contact one of our sales teams.