WHAT IS A GREEN MORTGAGE?

Although there is no universal definition of a green mortgage, most industry experts would agree that money borrowed against the value of your home, for the purposes of making your home more energy efficient, would be the most widely accepted description.

Some sectors of the mortgage industry have developed products for this and will provide you with discounted mortgage deals once you have completed your green retrofit and can provide evidence that you have improved your property’s Energy Performance Certificate (EPC) rating. By comparison, a small selection of lenders will offer you discounted mortgage products when purchasing an energy-efficient new build home.

The UK government has set itself a very ambitious target of net zero emissions by 2050 and has an aspiration to help as many homes as possible to reach EPC Band C by 2035.The challenge this presents is greatest in the owner-occupier sector, which accounts for 63% of homes, of which an estimated 17 million are below EPC Band C.

The Green Home Finance Innovation Fund was set up to provide funding for the initial development and piloting of green home finance products, which will hopefully follow soon with the successful applications.

Cherry Mortgage & Finance is certainly doing it’s bit — for every mortgage they arrange, they are planting one tree in a school or nature reserve in the UK, and offsetting one tonne of CO2 through an anti-deforestation project in the Amazon Rainforest.

Whatever you are considering, you should be reassured to know that we can help with mortgages for home renovations, including property extensions, loft conversions and refurbishments that improve the energy efficiency of a property. To find out more call us on 01202 925 365 or visit www.cherryfinance.co.uk.

As a mortgage is secured against your home, it could be repossessed if you do not keep up the mortgage repayments.