Green Ideas for Alternative Mortgages
Obtaining a full green mortgage is quite a difficult and time consuming process. For this reason, an increasing number of providers are now offering green options on standard mortgages. This allows home owners to obtain green mortgages but to do so in a way that is complementary to their current mortgage arrangement.
Suggestions for Alternative Green Mortgages
Norwich & Peterborough have been particularly innovative in this field offering discounts for energy efficiency regardless of which mortgage you have. Another offering from Norwich & Peterborough is the Brown Mortgage.
With a brown mortgage, a borrower can receive 85 percent of the purchase price of a property, in advance. This mortgage is aimed at conversion or renovation projects where the borrower requires the advance to assist with making the renovation payments.
A more recent entrant into the green mortgages' market is the Co-Operative Bank. As part of their green commitment, the Co-op completes, as a standard part of the valuation, an energy efficiency report which the borrower can use as a way of ensuring that they improve their energy consumption levels. The Co-op also makes an annual payment to Climate Care to assist with the issues surrounding global warming. This payment is made for every new mortgage that is taken out.
Another way of taking a green approach without actually having a green mortgage is to opt for a lender that offers ethical mortgages. For example, by taking an ethical mortgage you can be certain that the lender you are using will be making ethical investments such as forest regeneration or making donations to green charities. This is a more generalist approach which is very useful, nonetheless, if you cannot (or do not want to) make direct changes to your individual property, but still wish to assist with the growing global environmental issues.
For those who are unable to take a true green mortgage, there are possible alternatives;
many providers offer discounts on their standard mortgage interest rates for homeowners who are able to make energy savings;
some providers offer additional financing for homeowners wanting to complete renovation work that will improve the energy rating of the property;
several mortgage lenders exist that offer ethical mortgages to borrowers who guarantee that they will make investments in ethically good causes such as environmental charities.