A green mortgage could be right for you

A growing number of mainstream lenders are now offering green mortgage products, which encourage homeowners to buy energy-efficient homes. This is because they could cost less to run due to reduced energy bills, so you’re in a better financial position to be able to repay their loan.

As an incentive for choosing an energy-efficient home, you could be offered a preferential interest rate, an increased loan amount or cashback.

Eligibility criteria for a green mortgage varies from lender to lender, but the property's Energy Performance Certificate (EPC) is typically a key factor. Homes are usually required to have an energy-efficiency rating of A or B.