As society grows ever more eco-conscious, Brad and Susie from Meyers consider the impact of a home’s energy performance on a mortgage offer.
We are all becoming increasingly aware of the the link between our use and production of energy and its impact on the climate.
We are beginning to see an increase in the steps being taken by large corporations and smaller companies to combat this.
How could this effect the individual homeowner?
Many New Years resolutions and plans for mortgage companies revolve around sustainability and energy efficiency, and therefore the pace of incentivised lending for properties with a higher Energy Performance Certificate (EPC) rating is beginning to escalate.
Green mortgages
We have seen this in a number of specialised lenders who have embraced ‘Green Mortgages’. For example, NatWest are offering a reduced rate to those purchasing or remortgaging a home with an EPC rating of A or B.
It is said that in the next 12 months the activity surrounding these Green Mortgages is set to rise, with increased support from the government.
This also appears to be gaining individual traction as a recent survey found that 48% of homeowners and prospective homeowners would consider improving their energy rating to access a better mortgage.
So how can we improve our property’s EPC rating?
• Double glazing
• Loft insulation
• Wall insulation
• Replace your boiler to a new, energy-efficient boiler
• Solar panels
If your home has an up to date EPC, you can view it on the governments website https:// www.gov.uk/find-energy-certificate.
You can also find lots of useful help and advice on improving your properties EPC rating here https://www.simpleenergyadvice.org.uk
The benefits of Green Mortgages
Broadly speaking, a green mortgage is one that rewards someone for buying/owning an energy-efficient home. That typically means either a slightly lower interest rate, cashback when you take out the mortgage, or both. Some deals are restricted to people buying a new-build property. In addition, some lenders offer their existing mortgage customers additional borrowing at discounted rates to pay for green home improvements such as replacing draughty windows, upgrading an outdated heating system or adding solar panels. The government has said it is keen to support a competitive market in this area and is exploring plans to link mortgages to green home improvements by imposing targets for banks and building societies.
Please do get in touch for any property advice or a free expert valuation on your home: Brad at Shaftesbury – 01747 352077 Susie at Blandford – 01258 690553
