What’s a Green Mortgage
and How Do You Get One in Kent?

If you’re taking out a new
mortgage or about to refinance your property, have you considered a green
mortgage? No? Never heard of it? Well, that’s what we’re here for.

A green mortgage is not
actually new. In fact, the concept was first launched about 30 years ago but
wasn’t used much. However, in the last few years, green mortgages have been
gaining momentum, and are being offered by more and more high-street lenders.

What
is it?

It’s basically a mortgage
that rewards energy efficiency. Borrowers buying energy-savvy new-build
properties or undertaking green improvements are offered better rates by their
lenders.

A green mortgage works in the
same way as a standard mortgage, but it’s cheaper. Borrowers are incentivised
for being more energy efficient and are encouraged to reduce their overall
energy usage.

Am
I eligible?

Most lenders require a
property to have an Energy Performance Certificate (EPC) rating of A or B to be
eligible for a green mortgage. And that’s not easy to achieve.

The current EPC rating scale
goes from A (the most energy efficient) to G (the least). In 2019, it was
estimatedthe average UK property EPC was just a D.

If you’re buying a new-build
property, it might be worth exploring a green mortgage with your lender. Newer
homes are typically more energy efficient than older properties which often need
a lot of work to meet the higher rating requirements.

Why
are green mortgages becoming more popular?

It’s all to do with the government’s
aim to reach net zero emissions by 2050.

Currently, it’s estimated
that 15% of the UK’s climate emissions are produced by residential properties. So,
the government has said lenders must have an average EPC rating of C across
their mortgage portfolios by 2030.

In simple terms, the
government hopes that the target they’re imposing on lenders will trickle down
to consumers who will make green improvements in return for lower mortgage
rates.

How
can I improve my EPC?

Unfortunately, if you own an older
property, achieving a higher EPC rating could cost quite a bit. Some big green
improvements include draught-proof doors and windows, roof and loft insulation,
cavity wall insulation, insulated solid walls, a new boiler, and a low-carbon
heating system.

You can check your property’s
EPC ratinghere.

Thanks for reading, from all
at CWB Property.