As gas, electricity, and water bills start to creep up and up, many people are looking at ways to cut costs. Whether its listening to Martin Lewis’s rambling suggestions on TV or cutting back on TV time and having the heating running, people are trying to find ways to ensure that their energy bills don’t bankrupt them! One really interesting observation that we and other professionals in the mortgage market have made recently is the rising interest in energy efficient homes and green mortgages to accompany them.
An energy efficient home is a property that has either been purposely built or renovated so that it conserves energy and runs on more renewable and sustainable means. For example, solar panels, better insulation, more efficient heating and cooling systems. These types of properties could reduce the amount of energy you use to heat and cool your property and the electricity you use will be more reliant on solar energy rather than from the electric board. As an incentive for building and purchasing more energy efficient homes, many mortgage lenders are starting to offer green mortgages, specifically designed to be used on these properties.
Eligibility criteria for green mortgages varies from lender to lender, but the property’s Energy Performance Certificate (EPC) is typically what it depends on. These properties would normally have energy efficiency ratings of A or B from the EPC. If the property is rated as A or B, then it can be mortgage with a green mortgage which often has benefits not offered with regular mortgages and will increasingly be offered at lower rates to incentivise more property purchases.
Legal & General Mortgage Club have released some figures to the public this week from a study they have recently carried out. They have found that the amount of people interested in green mortgages and energy efficient homes has increased by 34% in the last month, since the energy bill price cap has increased.
Kevin Roberts from L&G has commented:
“This month’s data also shows that some buyers are considering eco-friendly products and making greener choices. We are still very much in the early stages of the green revolution, but it seems safe to assume that rising energy bills have prompted more buyers to consider the financial benefits of opting for greener homes. While volumes remain low for now, brokers and lenders have a key part to play in raising awareness of green products and educating borrowers about EPCs, retrofitting, and other associated factors.”
If you think that an energy efficient property and a green mortgage sound like something that you might be interested in, we can help you with securing the best green mortgages available on the market. Just give our friendly and helpful advisors a call to see how we can help.