Green Mortgages

What is a Green Mortgage

Green mortgages are mortgages where the mortgage lender lets you borrow money for the purchase of an energy efficient property.

The reason “green mortgages” is a thing, is because some mortgage lenders offer incentives such as lower rates or cashback to encourage and support energy‑efficient homes. Lenders typically favour properties with strong EPC ratings (A–B, and in some cases C), and some mortgage lenders will allow remortgaging to fund improvements that raise EPC performance.

Applicable to

• Purchase
• Remortgage
• Further Advance
• Second Charges

What type of property qualify for green mortgages?

A property qualifies for a green mortgage when it meets a lender’s definition of being energy‑efficient or capable of becoming energy‑efficient through funded improvements. Although each lender sets its own rules, most follow a similar pattern and consider the following:

A High EPC Rating (Most Common Requirement) is the most common factor when it comes to green mortgage eligibiity. 

• EPC rating A or B (the standard benchmark)
• Some lenders also accept EPC C, especially for new builds or remortgages

A Valid and up‑to‑Date EPC Certificate is an absolute must. It must be current (within 10 years), match the exact property details and clearly show the rating on the A-G scale.
The EPC must:

New Builds With Strong Energy Standards
Many new‑build homes qualify automatically because they are built to modern insulation standards, with efficient heating systems and low carbon requirements. Developers often provide the EPC at completion and with regulations at the forefront of their market, it is an integral part of their process.

Properties Undergoing Energy‑Efficiency Upgrades
Some lenders offer green products if you are borrowing to improve the EPC rating with things such as insulation, windows, heat pumps or solar panels. These works must be evidenced with real quotes and invoices provided. The EPC must be updated after the completion.

Buy‑to‑Let Properties With Strong EPC Ratings
Landlords may qualify if

• The rental property is EPC A–C
• It meets lender‑specific rental stress tests
• Planned upgrades can be evidenced (for improvement‑linked products)

Why Use The Mortgage Broker for Your Green Mortgage

Choosing the right green mortgage isn’t just about finding a cheaper rate; it is about understanding how your EPC rating, planned upgrades and long‑term goals fit into a lender’s criteria. That’s where a specialist broker makes all the difference and can help you get the right mortgage rate and solution for your needs.

Our advisers work with homeowners and landlords every day who want to improve energy efficiency or secure a greener deal. They know which lenders reward strong EPC ratings, which ones support upgrade funding, and how to position your application so you get the best possible outcome. Instead of leaving you to decode complex rules, they break everything down into clear, practical steps.

People come to us because they want guidance they can trust. You get transparent explanations, tailored recommendations and a team that genuinely listens. We look at your property, your plans and your budget, then match you with lenders who fit your situation and not the other way around.

With access to UK wide lenders, we compare the market for you and highlight the options that align with your goals. No guesswork and no unnecessary jargon. Just straightforward advice that helps you make confident decisions about your green mortgage.

Why Use a Green Mortgage Broker?

Green mortgages are still relatively new and every lender approaches them differently. Some offer rate reductions for EPC A–B homes whilst others provide cashback or additional borrowing for insulation, heating upgrades or solar. A few require evidence of planned works before they’ll release funds so trying to understand all of this and navigating it all alone can be overwhelming.

A green mortgage broker simplifies the entire process for you and we can give you dedicated guidance and support from an experience adviser who understands the nuances, from EPC requirements to affordability rules, and who can explain what each lender is really looking for. That insight saves time, reduces stress and helps you avoid costly mistakes all whilst giving you instant peace of mind.

More importantly, a specialist broker ensures you’re not missing out on incentives that you may actually be eligible for. We speak to many clients who are unaware that they qualify for a greener pricing until someone knowledgeable checks their EPC and lender options.

Working with a broker also means you are supported from the first conversation to the final offer and not left chasing updates or trying to interpret lender terminology. You get clear communication, realistic expectations and a service built around your needs.

If you want the right advice, access to a wide range of lenders and a smoother path to securing a green mortgage, a dedicated broker is one of the smartest choices you can make.

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Green Mortgages

Shane Frank, The Mortgage Broker, talks all about green mortgages and what this might mean for first time buyers and home movers in the future.

What is a green mortgage?

A green mortgage is a way of a lender incentivising you to either purchase or remortgage a green property. A green property has either been built or had work done to achieve an energy performance certificate graded as A to C.

Are there many of these available at the moment?

They are becoming more popular and a handful of lenders have launched into the market. The main high street lenders that are launching green home mortgages are building societies, but they are becoming more and more prevalent. There’s a big Eco movement going on at the moment to make everything as energy efficient as possible, so they are steadily becoming more popular with lenders.

Is a green remortgage available?

Yes, green remortgages are available. They’re not as popular as purchases at the moment, but again they are becoming more available as lenders move into the market.

Are green mortgages available to first time buyers?

Yes, they are available under the same criteria, based on the EPC energy performance rating. It’s important not to assume that all new builds apply automatically, however, as new builds can be a mix of energy efficient and not, but certainly the majority of them should be.

Can you get a green Buy to Let mortgage?

Absolutely, there aren’t many available as of yet, but there are some green Buy to Let mortgages. With the changes to regulations coming in 2025 whereby rental properties will also have to have an energy performance rating minimum of C, they are only going to become more popular.

Do many mortgage lenders currently offer green mortgages?

A few high street lenders have really good priced green mortgage options and as time goes on, more lenders will come to the market. Building Societies offer some good deals on energy efficient homes. There are some lenders that aren’t doing it yet, but even this year and next year, you’re likely to see more come to the market.

Are there any differences in the mortgage application process for a green mortgage?

The actual application process is the same, where lenders will look at your income, your debt and do an affordability check. The exception is with the property, it’s really important that your broker checks the energy performance of the property first, because that will be the first thing that lenders will look at for a green mortgage application. The process in itself is the same as any other mortgage.

Are there any extra costs when it comes to green mortgages?

There are no costs involved, as such. There’s actually an incentive available when you take out a green mortgage. The lender may offer you cash back, or a better rate against a standard mortgage.

Do you think all mortgages will go green in the future?

I think they are certainly going that way and as green mortgages become more popular, I think we will see them overtaking standard mortgages eventually. A broker will need to make sure that we are comparing all the mortgages that are available on a green mortgage and make sure you’re getting the most suitable rate and lender for the property, whilst achieving a performance rating of A-C. I think all mortgages will eventually be green at some point in the future, because the government wants to lower emissions and making properties as energy efficient as possible is the only way to do this.

There are some properties that unfortunately won’t be able to meet that minimum energy performance rating of C, but if you are really concerned, once you’ve selected the property and we review it, we can see if this is an option for you. If you’re going to get a green mortgage it’s really important that you speak to us and we can help.