Green mortgages
Last reviewed 23/01/2009: any recent updates in this colour.
Issues of energy efficiency in the home have been highlighted by the government's plans to introduce energy performance certificates (EPCs) as part of the home information pack (HIP). In general, it is unlikely that lenders will want to have a copy of an EPC or that your mortgage rate will be affected by it.
However, some lenders are now offering 'green mortgages'. There is no standard definition of a green mortgage and it is up to individual lenders whether they offer a 'green' product. Some lenders will offer a discount on their standard variable rate if your home is energy efficient or if you are borrowing to invest in energy efficiency improvements. Others will offset the carbon footprint of the mortgage by planting trees or making a donation to the Carbon Trust.
The Energy Efficiency Partnership for Homes (EEPH) Home Purchase and Finance group has produced a definition of a green mortgage. This is attached. Further information about the work of the group can be obtained from the EEPH website.
We are aware of the following lenders who offer green mortgages or further advances:
Hanley Economic Building Society
Norwich & Peterborough Building Society
Further information about what you can do to make your home more energy efficient can be found on the Energy Savings Trust's website.
