As the UK continues to work towards a net zero future, Amanda Aumonier, Director of Sales & Operations at Better.co.uk, shared details on the topics of green mortgages and lenders, EPC ratings, and tips on making your home greener.
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Green mortgages
A green mortgage rewards you for buying an energy-efficient home or for making energy-saving home improvements. The criteria typically include the house having a high Energy Performance Certificate (EPC) rating – usually A or B. Amanda shared that “seven energy-saving home improvements that can make your home green include insulation, LED lighting, smart thermostats, solar panels, double glazing, energy-efficient boilers, and water-saving devices.”
There is currently a limited number of lenders offering green mortgages: high-street lenders include Nationwide, Barclays, Halifax, NatWest, and Virgin Money; smaller lenders include Kensington Mortgages, Saffron Building Society, Swansea Building Society, and Gatehouse Bank.
EPC ratings
An EPC rating evaluates a property’s energy efficiency, ranking it from A (most efficient) to G (least efficient). It’s based on factors like insulation, heating, and renewable energy sources.
New builds and recently renovated properties often have the best EPC ratings due to modern construction methods, better insulation, and energy-efficient systems. Areas with newer developments or extensive modern housing, like parts of London or new housing estates, are likely to have better EPC ratings.
Older buildings, especially Victorian or Edwardian homes, often have lower EPC ratings due to factors like poor insulation, single-glazed windows, and outdated heating systems. Older city areas, historical towns, or rural locations with aged housing stock, like parts of rural Wales or Scotland, might have lower EPC ratings.
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Amanda added that “Potential benefits of green mortgages include lower interest rates, cashback offers, and long-term savings on energy bills due to living in a more efficient home. Downsides might include limited availability, strict eligibility criteria, and the risk of ‘greenwashing’ (where the green benefits are overstated). Sometimes, cheaper standard mortgage deals are available.
“Green mortgages are part of a growing focus on sustainable living. While they offer benefits, it’s crucial to weigh them against other mortgage products to ensure they’re the right financial choice for you. They’re not just about saving money but also about reducing your carbon footprint and contributing to a more sustainable future.”
For more information, visit https://better.co.uk/mortgages/green-mortgages
