Green Mortgage Providers
Only a limited number of suppliers offer green mortgages. Therefore, anyone looking to obtain a green mortgage is likely to have to comply with fairly stringent requirements in order to be eligible for the favourable green mortgage rates.
One of the main suppliers of green and ethical mortgages is the Ecology Building Society. To qualify for a green mortgage with the Ecology Building Society, the borrower must enter into an 'ecological payback' style mortgage.
One of the key factors with this building society is that they consider the property and not the person. There is no specific set of requirements for obtaining a green mortgage from the Ecology Building Society. However, the lender will make the decision based on whether offering finance for the property will be environmentally beneficial, overall.
In order to prove that lending on the property is environmentally beneficial, the borrower will have to prove a range of factors such as sustainability, carbon emissions and the use of reusable materials. Crucially, the Ecology Building Society will lend money towards renovation projects which is something that most other lenders would not consider.
One of the other main providers of ethical mortgages is Norwich & Peterborough Building Society. Norwich & Peterborough Building Society is a reasonably large provider and offers multiple different green mortgages. The main offering is a carbon neutral mortgage which ensures that for every borrower who has this type of mortgage, 8 trees are planted per year for the first 5 years. By doing this, the carbon emissions from the property are neutralised by the trees planted.
Norwich & Peterborough also offer discounts on standard mortgages, if the borrower makes an effort to become more energy efficient. This type of green mortgage has had a large take-up as it is still possible to keep your current mortgage deal but also gain a discount based on the energy efficiency of the property.
There are only a few main suppliers of green mortgages meaning that requirements can be quite stringent;
The Ecological Building Society considers every case on an individual basis, making them a good lender to talk to about a renovation project;
Norwich & Peterborough Building Society is another large green mortgage provider offering carbon neutral mortgages as well as discounts for energy efficiency in any home.