Detailed Green Mortgage Terms
Anyone considering taking a fully green mortgage should look in detail at the terms they are being offered to be certain that the mortgage is viable both financially and practically. Although it may be possible to ensure that your property is suitable for a green mortgage, you may find that the cost of renovation simply makes the project unrealistic.
Ecology Building Society
One of the largest providers of green mortgages, the Ecology Building Society routinely offers a competitive rate of around 5.7 percent, (this, of course, varies depending on general interest rates), with discounts for new borrowers. As the Ecology Building Society specialises in assisting with green renovation projects, it is not uncommon to see maximum loan to value level of around 80 to 90 percent.
Norwich & Peterborough Building Society
A build green mortgage from Norwich & Peterborough Building Society is one of the most generic green mortgages currently available. Rates are around the 4.44 to 4.69 percent mark, although this depends on the amount of loan to value that is required as well as on the property itself. Potentially, it is possible to obtain 95 per cent of loan to value, although this may affect the interest rate offered.
Discounts are generally available for an initial period. In addition, a green mortgage will offer cash back to assist with environmentally friendly projects on the property, plus a free energy survey to assist homeowners in identifying problems.
In theory, a green mortgage with the Co-operative Bank is no different from any other mortgage offerings; it simply comes with an ethical investment requirement. Typical rates are somewhere between 4.5 and 4.8 percent, with discounts available and varying rates depending on the amount of loan to value that is required.
Other Terms to Consider
Anyone looking to make energy efficiency improvements to their property should approach their current lender to see if they are eligible for any incentives for making energy efficiency improvements such as installing solar panels or using environmentally friendly materials. Even lenders that do not advertise themselves as offering green mortgages may offer this type of financing, so make sure you ask the question!
Green mortgage terms vary depending on the lender;
in many cases, the lender will offer a range of options similar to a normal mortgage but with incentives to become environmentally friendly;
ask your current lender if they offer any incentives even if they do not offer green mortgages, as many may consider assisting with the financing of environmental improvements.