Green mortgages

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A green mortgage offers preferential terms if a buyer can demonstrate that the property they are borrowing for meets certain criterion, such as certain EPC ratings. Banks and building societies across Europe are launching green mortgage products at an ever increasing rate. Green mortgage products come in a variety of different forms, but all aim to incentivise homeowners to invest in improving the energy efficiency of their properties.

The UK’s green market has grown significantly – from 4 products on offer in 2019 to more than 60 today. The GFI has played a pivotal role in catalysing this market. The Green Home Finance Principles have provided confidence to the market to channel finance towards energy-efficient homes and we have spurred the development of innovative new products, such as Perenna and Octopus’ world-first ‘Zero Bills’ Mortgage.

Certificate in Green Mortgages

The investment required in the UK’s housing stock cannot be solely funded by government. Access to private sector finance is essential to fund energy efficiency upgrades.

Green mortgages have grown from 4 products in 2019 to 61 in 2024, with continued investment and product design anticipated over the coming years. With 84% of all mortgage transactions completed by a mortgage adviser, the industry can play a key role in educating customers on how to finance green home improvements.

Our training course has been accredited by London Institute of Banking & Finance (LIBF) and is designed to increase the knowledge of the emerging market of green home finance.

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Resources

Green mortgage overview

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Green Home Finance Principles

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Lender’s Handbook on Green Home Retrofit and Technologies

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The way ahead for the UK’s green mortgage market

The Green Finance Institute looks at the evolution of this growing market to date and the innovation, policy and regulatory levers that will ensure...

UK Green Mortgage Products

Company Name

Product Name

Link to Product

Launch Year

Low-interest rate mortgage for new and/or existing customers

Additional borrowing for new and/or existing customers

Cashback/ Refund for new and/or existing customers

Energy Efficiency of renovated/retrofitted property must be improved

Property purchased or built must be energy efficient

Validation required?

Type of Building or target market

EPC Target

Aligned or supporters to the GHFPs?

AIB

Green Mortgage Rate

https://aibni.co.uk/our-products/mortgages/green-mortgage

Feb-20

Yes

Yes

Yes

EPC must be submitted at the stage of application.

New Builds and Existing Homes

A/B

Barclays

Green Home Mortgages

https://www.barclays.co.uk/mortgages/green-home-mortgage/

2018

Yes

Yes

Verification via an EPC or Predicted EPC that property has or will have an energy efficiency rating of 81 or above, or EPC A or B.

New Build

A/B; 81 SAP

Barclays

Green Home Reward

https://www.barclays.co.uk/mortgages/greener-home-reward/?

2022

Yes

Yes

Invoice provided showing proof of works

Barclays

Incentive: 50% Discount on Hive products and instillation

https://www.barclays.co.uk/sustainability/greener-homes/hive-thermostat-mini/terms-and-conditions/

Apr-23

Barclays

Green Home Buy-to-Let Mortgages

https://www.barclays.co.uk/mortgages/green-buy-to-let-mortgage/

Jan-22

Yes

Yes

Verification via an EPC or Predicted EPC that property has or will have an energy efficiency rating of 81 or above, or EPC A or B.

Buy-to-let, Existing and New Build

A/B; 81 SAP

Birmingham Midshires

Green Mortgages

https://www.bmsolutions.co.uk/placing-business/green-mortgages/

Jul-22

Yes

Yes

Customers are required to have either a valid Energy Performance Certificate (EPC) or Predicted Energy Assessment (PEA) of A-C

Buy-to-Let or Let-to-Buy Property

A-C

Yes

Coutts

Green Mortgage

https://www.coutts.com/about/sustainability.html

Jun-21

Yes

Yes

The client is asked to send across a copy of the EPC certificate. To validate, bankers are also instructed to enter the RRN code on epcregister.com to check the EPC Grade.

Existing Homes or New Build

A/B

Yes

Coutts

Retrofit Green Mortgage

https://www.coutts.com/about/sustainability.html

Jun-21

Yes

Yes

Yes

The client is asked to send across a copy of the EPC certificate. To validate, bankers are also instructed to enter the RRN code on epcregister.com to check the EPC Grade.

A/B/C

Yes

Coventry Building Society

Green Additional Borrowing

https://www.coventrybuildingsociety.co.uk/member/mortgages/sustainable-living/green-additional-borrowing.html

May-23

Yes

Yes

Yes

Prior to an offer being produced, customer must send in a quote confirming the work being undertaken amounts to at least half the funds being requested.

Residential and Buy-to-Let

Yes

Chorley Building Society

Green Home Improvements - Additional Borrowing

https://www.chorleybs.co.uk/mortgages/additional-borrowing/

Jul-22

Yes

Yes

Chorley Building Society

Green Home Improvements

https://www.chorleybs.co.uk/knowledge-hub/your-guide-to-a-greener-home/

May-22

Yes

Existing Properties

A-B

Coventry Building Society

Green Additional Borrowing

https://www.coventrybuildingsociety.co.uk/member/mortgages/sustainable-living/green-additional-borrowing.html

May-23

Yes

Yes

Yes

Prior to an offer being produced, customer must send in a quote confirming the work being undertaken amounts to at least half the funds being requested.

Residential and Buy-to-Let

Yes

Danske Bank

Danske Carbon Neutral Mortgage

https://danskebank.co.uk/personal/products/mortgages/carbon-neutral-mortgages

Jan-22

Yes

Yes

Existing Homes

A-C

Dudley Building Society

Eco Self-Build Discount for Term - Advance

https://www.dudleybuildingsociety.co.uk/intermediaries/intermediaries/products/eco-self-build-discount-for-term-advance/

2020

Yes

Yes

Plans of how the EPC rating will be incorporated into the plan must be evidenced.

Self-Build

Anticipated A or B

Yes

Dudley Building Society

Eco Self-Build Discount for Term - Arrears

https://www.dudleybuildingsociety.co.uk/intermediaries/intermediaries/products/eco-self-build-discount-for-term-arrears/

2020

Yes

Yes

Plans of how the EPC rating will be incorporated

Self-Build

Anticipated A or B

Yes

Dudley Building Society

Two Year Fixed Energy Efficient Remortgage

https://www.dudleybuildingsociety.co.uk/intermediaries/intermediaries/products/3-79-two-year-fixed-energy-efficient-remortgage/

Jun-21

Yes

Yes

Yes

Quotes of how the borrower intends to improve the EPC rating must be evidenced.

Residential Homes

A/B

Yes

Dudley Building Society

Three Year Fixed Rate Energy Efficient BTL Remortgage

https://www.dudleybuildingsociety.co.uk/intermediaries/intermediaries/products/three-year-fixed-rate-energy-efficient-btl-remortgage/

Jun-21

Yes

Yes

Yes

Quotes of how the borrower intends to improve the EPC rating must be evidenced. Cashback must be used to improve EPC band.

Buy-to-Let

A/B/C

Yes

Dudley Building Society

Two Year Discount Energy Efficient Further Advance

https://www.dudleybuildingsociety.co.uk/intermediaries/intermediaries/products/2-10-two-year-discount-energy-efficient-further-advance/

Jun-21

Yes

Yes

Yes

Indicative list of accepted home improvements provided.

Existing Homes

N/A Based on qualifying works

Yes

Ecology Building Society

C-Change Discount: Sustainable Homes Discount

https://www.ecology.co.uk/mortgages/c-change-discounts/#sustainable

2006

Yes

Yes

Yes

Discount applied once confirmation that property is completed and final energy certification is provided.

Self- and Custom-Build, Existing Homes, Conversions

Minimum A/B (88 SAP for self- and custom-build and 85 SAP for conversions)

Yes

Ecology Building Society

C-Change Discount: Retrofit Discount

https://www.ecology.co.uk/mortgages/c-change-discounts/#retrofit

2006

Yes

Yes

Yes

Yes

Discount applied based on the scale of improvements in the EPC rating and once final energy certification is provided.

Renovations

Improvement in the EPC rating

Yes

Ecology Building Society

C-Change Discount: Energy Improvements Discount

https://www.ecology.co.uk/mortgages/c-change-discounts/#energy-improvements

2006

Yes

Yes

Yes

Discount applied to value of qualifying works for energy efficiency improvements.

Existing Homes, Renovations

N/A - based on qualifying works

Yes

Foundation Home Loans

Green ABC+ Products

https://www.foundationforintermediaries.co.uk/buy-to-let/green-mortgages/

Apr-22

Yes

Yes

Yes

Yes

Property EPC must show the rating applicable to the product. Product comes with one free valuation.

Buy-to-Let

A/B/C

Foundation Home Loans

Green Reward Mortgage

https://www.foundationforintermediaries.co.uk/buy-to-let/green-mortgages/

Feb-21

Yes

Yes

Cashback upon completion and a reduced product fee.

Buy-to-Let

A/B/C

Gatehouse Bank

Green Home Purchase Products

https://gatehousebank.com/personal/home-finance/green-finance-products

Apr-22

Yes

Yes

EPC must be submitted at the stage of application.

Buy-to-Let, Existing Homes

A/B

Hampshire Trust Bank

Bridge EPC Refurb

https://www.htb.co.uk/blog/htb-unveils-bridge-epc-product

May-22

Yes

Yes

Buy-to-Let

A-C

Halifax

Green Living Reward

https://www.halifax.co.uk/mortgages/help-and-advice/green-living/green-living-reward.html

Nov-20

Yes

Yes

Customers are required to submit a claims form and upload a copy of their invoice. Customers must register for the reward by the 31st October 2023 and claim by 29th February 2024

Existing Homes, New Builds

Yes

Halifax

Green Mortgage Cashback

https://legacy.greenfinanceinstitute.com/programmes/ceeb/green-mortgages/

Jul-21

Yes

Yes

Customers are required to have either a valid Energy Performance Certificate (EPC) or Predicted Energy Assessment (PEA) of A or B

Existing Homes, New Builds

A/B

Yes

Hinckley and Rugby Building Society

Green Mortgages

https://www.hrbs.co.uk/mortgages/green-mortgages/

Jul-21

Yes

Yes

Yes

At least 50% of additional funds borrowed must be spent on specified list.

Buy-to-Let and Residential

Yes

Just Group

Green Lifetime Mortgage Feature

https://www.justadviser.com/products/lifetime-mortgages/green-lifetime-mortgage-feature

Jul-20

Yes

Yes

Yes

EPC must be submitted at the application stage. All customers will receive cashback when the advance completes to contribute to cost of EPC.

Existing Homes

Kensington Mortgages

eKo reward £500 cashback - Residential Purchase

https://www.kensingtonmortgages.co.uk/intermediaries/products

2021

Yes

Yes

Property must be rated A/B at time of purchase. Purchase Only

New Build and energy efficient existing properties

Table last updated in August 2023.

Pilots, initiatives and tools

EeMAP Initiative

Market-led Initiative focussed on the design and delivery of an “energy efficient mortgage”. Intended to incentivise and channel private capital into energy efficiency investments.

Green Product: BNP Paribas, collaborating with E.ON to develop and pilot such a product.

Aligned with the Green Home Finance Principles.

The VALUER research project

A collection of industry partners working towards creating the first mortgages and additional borrowing offered in the UK that recognise home energy efficiency in their affordability calculations. Partners: Monmouthshire Building Society, RICS, Rightmove and Sero.Green product: Monmouthshire Building Society’s Green Mortgage.

Santander: EnergyFact

A free, practical home energy report available for existing Santander mortgage customers with guidance to improve the energy efficiency of their home. Customers must have move home or have a mortgage with Santander; or borrow more money to carry out home improvements.

Halifax: Home Energy Saving Tool

For customers to create a personalised action plan for their homes. Existing customers and new customers all eligible.

Lloyds Bank: Eco Home Tool

Created in partnership with the Energy Savings Trust. For customers to create a personalised action plan for their homes.

Pepper Money launches EPC initiative

Pepper Money has launched a new initiative to help customers to make their homes more energy-efficient by offering existing customers a free energy efficiency survey, EPC certificate, and tailored action plan.

Home Energy Efficiency Tool

Here’s a great way to find out how much energy you use to run your home each year