By Alain Amos on


Take out a green mortgage and reap the financial rewards

The eco-friendliness of a new home is becoming increasingly important to home buyers. The more energy-efficient technologies the property has, the likelihood your utility bills will be reduced along with your impact on the planet. But did you know you could be rewarded for your home’s energy efficiency by taking out a green mortgage?

The UK’s commitment to meeting climate change targets has put energy efficiency in the spotlight when it comes to sustainable housing – and today’s house hunters are set to reap the benefits with exciting financial incentives thanks to what could well be a green mortgage revolution in 2022.

What’s a green mortgage?

The first green residential mortgage was launched in 2018 as part of an initiative to move to a more sustainable future for our buildings. According to a National Statistics report in 2021, more than a fifth of the UK’s total CO2 emissions are caused by the energy emitted from our homes.

Since 2018, many building societies and high street banks have introduced competitive green mortgage products and they’re now making a concerted effort to woo borrowers who want to take a more ethical approach to buying a home.

In essence, if you buy an energy-efficient home, you could be offered favourable terms, such a reduced interest rate on your deal, cashback or discounted rates to pay for environmentally friendly improvements. If you’re looking at upgrading an old central heating system or changing a draughty front door, this could be reason enough to consider applying for a green mortgage.

How do you qualify for a green mortgage?

Your eligibility for a green mortgage is directly linked to your home’s energy efficiency rating, which is shown on the energy performance certificate (EPC) that’s produced whenever a property is built, sold or rented. An EPC is valid for 10 years and is required for every house, apart from listed buildings.

Ratings range from A-rated for the highest scoring homes that are very energy efficient and have lower running costs to G-rated for those that need improvements carried out to score higher. The energy efficiency rating graph on the certificate shows the current and potential rating if the recommended improvements are made.

You can access the EPC for a property in England, Wales or Northern Ireland online at

To qualify for a green mortgage, your property will need to meet a certain level of energy efficiency. Depending on the lender, your home may need to achieve a particular EPC rating score, for example, an A or B-rated property. If you’re looking to buy a new-build home, your developer should provide a Predicted Energy Assessment to check its green mortgage eligibility.

Applying for a green mortgage

Mortgage Decisions has a great range of green mortgage products to suit borrowers who have prioritised buying a new home that has good eco credentials and those who are planning to make energy-saving improvements on their property.

We can match you with a green residential mortgage with competitive rates and financial incentives that will help you make a more affordable move to the energy-efficient home of your dreams.

Call us on 03454 500 200 and we’ll talk you through your options.

Your home may be repossessed if you do not keep up repayments on your mortgage.
There may be a fee for mortgage advice. The actual amount you pay will depend upon your circumstances.
The fee is up to 1% but a typical fee is 0.3% of the amount borrowed.

Alain Amos
Alain Amos, CeMAP CeFA CeSRE, has a wealth of financial services experience spanning more than 25 years, time spent with Countrywide and Charters. Former Divisional Director at Countrywide, Alain is a true leader and expert within the financial services sector.
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Very efficient service from start to finish. Good communication. Impressed all round.

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This is my first experience with getting a mortgage, but Rob explained everything clearly, answering all my questions, and helped me get the best mortgage for me. Louis also helped by keeping me updated with the progress of the application and chasing the lender on my behalf. Overall, a positive experience.

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