Most people wanting to get on (or already on) the housing ladder will know about the financing options. Deposits, variable, tracker … the terms people often jump to when they think about borrowing for a home – for many, their life’s biggest purchase.
But few have heard of ‘green mortgages’. Northstone’s super energy-efficient homes qualify for this fairly new type of lending. We asked new build mortgage expert Andrew Mannion, from RSC New Homes, what house-hunters need to know….
- What is a green mortgage?
A green mortgage rewards home-buyers for investing in properties that are better for the environment, with higher levels of energy-efficiency. Currently, homes with an A or B EPC rating (which measures energy efficiency) qualify for a green mortgage.
- They’re brilliant for energy-efficient new builds likes Northstone homes
Green mortgages are another choice for buyers who’ve fallen in love with a Northstone home. Built well above building regulations, Northstone’s new builds have been designed to be energy-efficient, with technology also fitted to reduce consumption. It means Northstone buyers can potentially unlock more incentives and mortgage options.
- But you can also use them on older properties
However … if you’re not in a position to buy a brand new home just yet, you could still benefit. Green mortgages can also be used to make investments that improve the energy efficiency of your home.
- They can give you better interest rates
One of the eye-catching incentives often cited is better interest rates. The equivalent savings on monthly repayments could cover a bill or other household expenses. Depending on the lender, the offer may be different, it could be a discount on the standard rate or a specific deal based on the product.
- Lenders are offering a real mix of green mortgages incentives
Some lenders offer thousands of pounds in one-off cashback payment. One of the main benefits buyers often find is that they can borrow more money – with green mortgages helping increase peoples’ borrowing capacity.
But, when it comes to mortgages, it always pays to seek advice and shop around. Just because it’s a green mortgage, doesn’t always mean it’ll be cheaper compared to other products on the market. It’s just another option open to you, that not every buyer can access.
- They’re better for your budget, as well as the environment!
Great news, if you’re looking at a home that qualifies for a green mortgage, you’ll likely already be saving money as well as doing your bit for the environment. Energy-efficient homes are cheaper to run, with lower monthly energy bills and (as a result of less energy consumption) lower carbon emissions.
- More high street lenders are launching green mortgage products
Green mortgages are becoming more popular in the UK, with main lenders including Barclays, Nationwide and NatWest offering such products alongside non high-street lenders. It’s good news, as it widens the options available for those buying a sustainable new build home.
- And it’s a trend that will likely continue
We expect that this is trend that will continue to grow. As technologies develop and homes become even more efficient, it’s likely that such homes will have a higher value (a safer bet for lenders!) With that, and the push for the UK to cut carbon emissions, expect to see this market growing, with more products and incentives over the coming years.
All Northstone’s homes currently on sale would qualify for a green mortgage. Book a viewing of our a showhomes today!
