So, what is a Green Mortgage?

June 16, 2020

Green Mortgages are out there for those who may have had some real time to think about what can be done differently during this lockdown. If you are concerned for the environment and want to find out if your mortgage can be part of a green solution you might be interested to hear that Saffron Building Society has launched a green mortgage. 

Essentially the building society offers a green Retro-Fit Mortgage it is designed to encourage borrowers to upgrade their home to a better energy efficiency rating. Saffron Building Society is one of the few lenders who offer this type of home loan and to get it borrowers need to prove that any green improvements to their property shift their EPC rating by one Band. All property needs to now have an Energy Performance Certificate or EPC and the minimum band required for this green mortgage is band E.

Back in July 2019, the government launched its Green finance strategy intending to contribute to changes needed to improve on mitigating climate change. Part of this was to set up a £5 million fund to help the financial sector develop green mortgages to encourage households to improve the energy rating of their home.

Matthew Fleming-Duffy, a green mortgage specialist, welcomed Saffron’s Retro-Fit Mortgage. Saying “It got drowned out given the understandable focus on Covid-19 in the media, but this week the UK finally got a green mortgage product that is competitively priced, widely available and fit-for-purpose. Saffron should be applauded for firmly putting green mortgages back on the agenda.”

There are millions of homes that need to become more energy-efficient if the UK is going to meet its ambitious net zero emissions targets by 2050. There are of course other providers of green mortgages and if plenty of time to think has motivated you to want to take up the challenge of the climate change with improving your properties EFC Enable’s IFAs in Bishops Stortford can help you look at how to finance it. 

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