Green mortgages – let us help explain what great news this is…

By Taryn McDade

Taryn possesses almost two decades of experience within the property industry. Her career started as a traditional estate agent in London, and she quickly progressed into managing the branch.

31 August 2023

With residential homes responsible for 21% of the UK’s carbon emissions, the property industry has recognised its pivotal role in improving the energy efficiency of new housing stock.

Growing concern about the global climate crisis, coupled with soaring energy prices and high costs-of-living, has swayed consumers to find ways to decrease their carbon footprint and the most impactful way to do this is by choosing new, energy efficient homes which not only are a smarter environmental choice there are huge savings on utility bills, increasing affordability.

Responding to the shift towards sustainable lifestyles and the rising demand for products that can help to reduce energy bills, lenders have launched products to financially reward consumers for making greener home choices.

Whilst the availability of green products has increased, there is still confusion amongst consumers around the types of products on offer and their benefits. To bridge this information gap, brokers will be fundamental to helping homeowners understand the green mortgage market and tackle any misconceptions.

Advising clients on what is on the market that is suitable for them, which eco-friendly specifications of a new build can save money on household bills in the long term and the return on investment landlords can expect, is essential.

While clients see the value of green products in having a positive impact on the environment, they will also want to see a return on their investments, especially in the current economic climate.

Fortunately, there is no need for a trade-off between the two interests, as green mortgages usually offer lower interest rates, extended loan terms and energy cost savings.

By making use of energy efficiency tools, our broker can show clients the EPC rating, information on CO2 emissions and estimated energy costs on each GETS property. By calculating the potential energy and cost savings, we can help clients work out their return on investment from these green features.

Not only can going green benefit clients with energy bills in the short term, but it can also be an advantage when they come to sell. It’s evident that energy efficiency is becoming an increasingly influential factor when buying a home, with almost nine in 10 prospective buyers deeming energy efficiency of a home as important.

This trend is set to continue, and with expensive energy bills and EPC legislation changes to consider, energy efficient homes will only increase in popularity.

Brokers are key to communicating the long term financial advantages of purchasing eco-friendly homes. For instance, products which reward clients for purchasing properties with energy efficient features, including advanced insulation, energy efficient heating systems and efficient windows and doors.

As sustainability continues to be a priority for the industry, we will see the green mortgage market expand. Going forward, brokers have an integral role to play in helping their clients to successfully navigate the green mortgage market, imparting their knowledge on the benefits of sustainable options, and identifying products which help them to create a greener home.

Here at GETS Property we have our own independent, whole market, new build mortgage advisor, Kate Mothersdale who is on hand to discuss the benefits of Green mortgages for both homebuyers and investors, contact us today to arrange your complimentary consultation…