A green mortgage may be offered by a bank or building society, if your property is deemed to be energy efficient. They are used to encourage homeowners to buy more environmentally friendly homes.
In return for choosing an energy efficient home, the bank or building society may offer preferential terms such as a better interest rate, an increased loan amount or cashback, but this can vary by lender.
Green mortgages are sometimes offered on new homes, due to their energy efficiency. So when buying a new home, not only could you benefit from preferential terms on your mortgage but also savings on your household bills, as a new home could save you over £3,100 a year on your energy bills*.
