In collaboration with Zigzag Financial
Streamline your experience with financing options for your energy products.
In today’s financial climate, we help you getcompetitive loan terms through ‘Green Deal’ schemes. Our experts will find the right product for your needs.
Embracing Sustainable Living Through Property Upgrades
As we move towards a greener future, new energy efficiency regulations for properties are set to transform the way we live, benefiting both homeowners and the environment. These regulations aim to enhance the energy performance of buildings, reduce carbon emissions, and pave the way for a more sustainable and cost-effective future.
What Are the New Regulations?
The government has introduced a series of comprehensive energy efficiency regulations designed to improve the environmental performance of residential and commercial properties. These regulations cover aspects such as insulation, heating systems, and overall energy consumption. Compliance with these regulations is not just a legal requirement but also a crucial step towards a more energy-efficient and eco-friendly society.
Key Highlights of the Regulations:
Upgraded insulation requirements for roofs, walls, and floors.
Ensuring better thermal performance to reduce heat loss and energy consumption.
Mandating the use of energy-efficient heating systems.
Encouraging the adoption of renewable energy sources for heating, such as solar or heat pumps.
Promoting the use of smart technologies to optimize energy usage.
Installation of smart meters and energy monitoring systems for better control and understanding of energy consumption.
Stricter EPC requirements to reflect the energy efficiency of a property accurately.
Improved grading system to guide property owners towards more sustainable choices.
Benefits for Property Owners:
Reduced energy consumption leads to lower utility bills.
Potential financial incentives for adopting energy-efficient measures.
Enhanced energy efficiency can positively impact the market value of properties.
Attract environmentally conscious buyers and tenants.
Banks increasing offer dual pricing for properties with better EPC ratings. So not only do you have all the benefits above you also have better pricing from lenders on your mortgages.
Better terms with lending and finance
An increasing number of well-established lenders are currently providing what are known as green mortgages. The concept behind these mortgages is that if you choose to reside in an energy-efficient home or take steps to make your property more environmentally friendly, your lender will acknowledge and reward you by offering a more favorable interest rate or providing cashback on your mortgage.
What is a green mortgage?
In essence, a green mortgage is designed to enhance the attractiveness of owning an environmentally sustainable property. In addition to the monthly savings on energy bills, the concept involves lenders offering cashback and/or a more favorable interest rate when you secure a green mortgage for an energy-efficient property.
Just five years ago, it would have been challenging to find a mainstream lender willing to provide preferential treatment based on an energy performance certificate (EPC). However, there are now a few high-street banks claiming to offer precisely that through their own iterations of a green mortgage.
While more high-street lenders are expected to introduce green mortgages in the future, currently, only a small number offer such incentives. Here’s an overview of the incentives provided by some high-street lenders:
Offers £500 cashback for properties with an EPC rating of A, or £250 for B rated. Provides ‘green’ borrowing for energy-efficient home improvements at 0% interest, ranging from £5,000 to £15,000, on a two-year or five-year fix.
Offers a preferential interest rate for properties with an EPC rating A or B, but limited to new-builds bought directly from a builder or developer.
Provides a ‘greener home reward’ of up to £2,000 for existing Barclays mortgage holders who undertake green home improvements.
Offers £250 cashback for properties with an EPC rating of A or B.
Provides cashback incentives for energy efficiency improvements, such as insulation, new boilers, double-glazed windows, or heat pump installations.
Offers a preferential interest rate for properties with an EPC rating A or B, with a maximum loan-to-value of 85%.
Offers a preferential interest rate for new-build properties with an EPC rating of A or B, with a maximum loan-to-value of 85%.
Provides £250 cashback for existing Virgin mortgage holders undertaking green home improvements.
In addition to high-street lenders, some non-high street lenders also offer green mortgages:
Kenston Mortgages:
Offers £1,000 cashback to homebuyers and remortgagers making energy-efficient improvements within 12 months of taking out a mortgage.
Saffron Building Society:
Provides a discounted rate with its ‘retro fit’ mortgage for homeowners proving increased energy efficiency.
Swansea Building Society:
Offers a fixed percentage discount off its standard variable rate for properties with an EPC rating of A or B.
Gatehouse Bank:
A sharia-compliant lender offering a discounted rental rate on properties with an EPC rating of A or B, along with offsetting the property’s carbon footprint for the fixed term of the chosen product.
These initiatives aim to encourage environmentally conscious homeownership by providing financial benefits for energy-efficient properties and green home improvements.Comparison Table between GREEN vs NON-GREEN Mortgages
Funding Solutions
If you require a loan to increase the energy efficiency of your home there are a number of solutions available to you which are specific to your circumstances. These include, but are not limited to, the following:
Please consider carefully any additional loans added to your home. And if you are unsure if this is the correct solution for you please seek advice from a qualified professional.
All the information on this page is for illustration purposes only and it does not mean you qualify for any of the mortgages mentioned.
THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBT SECURED ON IT