The growing importance of Green Mortgages in today’s market
By Furness Building Society
As climate change becomes a centralised concern for homeowners and landlords, energy efficiency is quickly transforming from a nice-to-have into an essential consideration. With rising energy costs and the ongoing push for sustainable living, property owners are looking for new ways to improve their homes while reducing their environmental footprint. In response, many lenders are now offering tailored green mortgage products designed to support this transition.
Supporting energy efficient home improvements:
Green mortgage products, such as further advance loans, allow homeowners and landlords to borrow additional funds against their existing mortgage to improve their properties energy performance. These loans are particularly useful for financing a range of energy efficiency measures, including:
- Solar panel installations
- Heat pumps
- Insulation (cavity wall, loft, solid floor)
- Double or triple glazing
- Electric vehicle (EV) charging points
- Electric storage batteries
- Hot water tanks
- Thermostatic radiator valves
- New boilers and utility upgrades
Investing in these types of home improvements not only helps to lower energy bills but also improves a properties Energy performance certificate (EPC) rating, contributing to the overall energy efficiency of the housing stock within the UK. By enabling property owners to make these upgrades, green mortgages are aligned with broader environmental goals, including the UK’s journey to net zero.
Benefits of Green Mortgages
For many property owners, the decision to pursue energy efficiency measures are driven by economic and environmental factors. With energy prices continuing to fluctuate, energy saving home improvements can lead to significant long-term cost savings.
Green mortgage products offer attractive options for those looking to fund these upgrades. By supporting home improvements that reduce energy consumption, these mortgages align with the growing demand for sustainable living and energy-efficient housing.
The future of Green Mortgages
As more homeowners and landlords become aware of the benefits of energy-efficient improvements, the demand for green mortgage products is expected to grow. These products not only offer financial incentives for making eco-friendly upgrades but also support the United Kingdom’s broader efforts to reduce carbon emissions and address climate change.
For adviser use only. Please note this content has been supplied by our lender partner and as such, is their responsibility. No party shall have any right of action against Legal & General in relation to the accuracy or completeness of the information in this article.