Many people are unaware that the UK government has been trying to encourage ‘green mortgage products’ since it announced its ‘Clean Growth Strategy’ in 2017. The move ties in with the governments mission to reach a zero emission level by 2050 and its recognition that the UK has some of the coldest and leakiest housing stock in Western Europe!
A green mortgage and the type of property that you look to buy are certainly worthy considerations these days, not just because of the environment, but also your pocket. The price of natural gas has ‘skyrocketed’ in recent months increasing the average dual fuel annual bill to £1277; if this wasn’t bad enough, further increases are expected which will see the average rise to £2,000 a year! Both green credentials and keeping a firm grip on outgoings will mean that the value of your property will be dictated more and more by its energy efficiency and EPC rating (Energy performance certificate). Properties are scored out of a 100 to achieve a rating between ‘A’ the highest / best to ‘G’ the lowest / poorest.
Given all the above, besides looking at house style and space as well as location and amenities, a properties energy efficiency OR the ability and practicality of being able to improve its energy efficiency, in order to gain a ‘green mortgage,’ should also be high on your list of new property ‘wants.’ The fact is that Green Mortgages can offer some very attractive deals if your property is energy efficient OR has the scope to be made more energy efficient attracting a higher EPC rating. Green Mortgages can offer lower interest rates or cheaper rates and often ‘cash-back’ when energy-efficient improvements are made. According to Nationwide Building Society, the average costs to improve a home’s energy efficient rating range from £8,100 to £25,800 for a property with a rating of ‘G.’
Things to consider when looking at potential homes for improvement are removing conventional gas boilers and looking into air source heat pumps (not ideal for older properties), biomass heating and solar panels. Insulation for floors, loft areas and cavity walls. Insulation is one of the cheapest and easiest things to do along with more efficient doors and windows. If an older property, like a 100 year old terrace house (always a popular first home choice), there won’t be cavity walls BUT often better doors windows can be achieved. Obvious ‘draft issues’ such as gaps under front doors and letterboxes are all easy improvements that are cheap to implement.
Lenders like Barclays, Saffron, Nationwide, Just Group and Ecology are just a selection of lenders offering Green Mortgages.
Talk to Dunham McCarthy today about Green Mortgages, property and EPC advice; consultations are absolutely free!
