What is an eco property?

An Eco House is a type of property that is constructed in an eco-friendly way and won’t affect the environment in a way that other constructions do. These properties are built using energy-efficient materials that reduce the carbon footprint.

Eco Housing is becoming much more popular as people are asking for features like solar panels, installation or earth-sheltered dwellings. These eco-homes are energy efficient and also pocket friendly with a lot of government schemes. In addition, eco houses are constructed by using organic ingredients. materials, herbicides or recycled products containing glass, metal, wood or plastic. There are a lot of government schemes for green mortgages and grants for such energy-efficient homes

Damian Youell

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1: We contact you and take down your details, income outgoings, name, address etc.

2: We will research the whole market and email you a detailed quote as well as a list of documents to proceed.

3: You upload the documents and information needed via our channel our online portal.

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Can you get a mortgage on an eco-house?

Yes, you can get a mortgage on eco-houses or properties but it could be difficult as compared to other residential properties.

This is because eco-homes falls under the category of “Unusual Properties” for which mortgage lender could avoid lending money. Another reason is that specialist lenders demand the resale value of a particular property when it comes to a mortgage application.  It is always convenient to contact a mortgage broker before going to the bank or building society.

What materials can an eco home be built with?

Eco-Homes are mostly built of energy-efficient materials to reduce the carbon footprints.  Some of the most common used materials in the construction of an eco-home are organic raw materials and other similar recycled products. One reason, these properties are considered unusual construction is because of the non-standard raw materials used in these.

How does a self build eco loan work?

If you are interested in the construction of an eco home, you will need a self-build mortgage rather than a standard one. After completion of each stage of such homes, an independent surveyor verifies that the work is finished and the lender can release funds to the builder or construction company.

How much can you borrow for an eco-home mortgage?

There are many benefits to getting a mortgage from an eco-property mortgage broker. The first benefit is that they have access to all types of mortgages and loans.  The total amount that you can borrow for an eco home mortgage depends on different factors such as employment type, income, age, affordability checks, other income etc.

Where can I find the best eco build mortgage lenders?

There are a range of mortgage lenders that may give you a loan if you are putting up a higher deposit and agreeing to higher mortgage rates. The first thing is to connect with our mortgage advisers who can help you in your loan application for a suitable bank or building society.

How can an eco property mortgage broker help me?

An eco property mortgage broker will guide you through the process and offers by different lenders to get you the best deal on such green mortgages. Green Mortgages are defined as the mortgage deals available to people who are interested in environment-friendly houses or energy-efficient home improvements on their property. Nowadays, more people are buying properties with energy efficiency ratings. Some people are also showing interest in increasing current energy efficiency ratings. Therefore, the eco property mortgage brokers make sure that the clients get the best deals on such mortgages. They offer various services including free consultation, mortgage advice, comparison of different banks and building societies, finding out the best deals and many more.

Are the rates better on green mortgages?

Mortgage rates depend on various factors such as credit rating, affordability checks, deposit amount etc.  You can get a better deal on a green mortgage if your current bank is already offering a green mortgage, on the other hand, if you are applying for a green mortgage with a new bank or building society then you may get more interest rates. It is also worth noting that green mortgages offer cheaper rates when specified the energy standard. For example, most banks will demand at least an Energy Performance(EPC) rating & energy efficiency rating of A or B that helps in the reduction of carbon emissions. As an applicant, you can get up to 0.75% off the standard variable rate by modifying to A Grade on your energy performance certificate.  You may not get the requested interest rate if your green home is producing higher carbon emissions.

Will green mortgages become more common?

Yes, it is predicted that the number of eco-mortgages will increase over the next few years.

This is because there are more people looking forward to living in a sustainable house which will be good for the environment in the long run. In addition, the government has been making efforts to encourage people towards living in environmentally friendly homes.

Is it enough to make homeowners go green?

No, it is important to note that there are some things that need to be done before going green. These include replacing old appliances with energy-efficient ones, changing the light bulbs to LED lights, installing solar panels, recycling and using water efficiently. All these steps will reduce carbon emission and save money. Moreover, the government has introduced several measures to support people who want to invest in green homes.

Can I get a mortgage for an unusual home?

Yes, if you have an unusual home that meets the requirements of EPC (Energy Performance Certificate), you can apply for financing. The lender will check whether the property complies with the set standards and then approve the loan. However, it is advisable to consult an expert to find out how much extra costs you would incur due to the unusual design of your home. If you do not have any problem with the cost then you should proceed with the application.

What are the criteria for a green mortgage?

The main requirement for getting a green mortgage is to meet the minimum EPC (energy performance certificate) rating. Most banks and building societies require at least an A grade rating from the builder or developer. On top of this, the green mortgage lender will look into the energy efficiency of the home. For instance, the lender will ask about the insulation level of walls, roofs and windows. Apart from this, they will compare the energy consumption of the home with the average energy consumption of similar homes so as to determine what type of loan offers you the best. They will also consider your monthly income and expenses so as to determine how much you can afford.

Some Additional FAQs-

What is a green mortgage?

A green mortgage is a mortgage where the borrower pays less than the market value of the property. The difference between the market price and the loan amount is paid back through lower repayments. The borrowers pay less interest and the lenders earn more profit.  If are interested in knowing more about green mortgage, you can ask for financial advice from one of our advisors.

Can I apply for a green mortgage on a new-build property?

Yes, but you must ensure that the property is built according to the required specifications. You may also choose to build the property yourself, but you will have to bear additional expenses.

How does green mortgage work?

Green mortgages are available only when the property is sold. When the property is purchased by the buyer, he/she agrees to pay off the loan within the specified time period.

Which properties are considered green property eligible for mortgages in the UK?

There are various types of green mortgage deals available depending upon the property’s energy efficiency. Some examples include:

• Energy efficient loans – This includes loans for properties which are rated above B++.

• Green loans – This includes loans where the property is rated below B++.

• Zero Carbon Loans – This includes loans where no carbon emissions are produced during the construction process.

• Sustainable Homes Loans – This includes loans for homes that are certified as sustainable by the Building Research Establishment.

• Low Carbon Loan – This includes loans for low carbon homes.

• Eco-Homes Loans – This includes loans on eco-friendly homes.

• Renewable Energy Loans – This includes loans that help the homeowner install renewable energy systems such as solar panels and wind turbines.

• Solar Power Loans – This includes loans to homeowners who want to install solar power systems.

Can I get a mortgage on energy-efficient properties?

Yes, you can get a mortgage on energy-efficient properties if the property has been properly insulated and meets the requirements of the lender. However, it is important to note that there are certain risks involved in buying a property with a green mortgage. These include:

• Mortgages for properties that do not meet the standards set by the lender.

• Mortgage payments that exceed the actual cost of the property.

• Inability to sell the property once the loan is repaid.

How are eco-home mortgages different from standard mortgages?

The basic differences between eco-home mortgages and regular mortgages are:

• Eco-home mortgages are based on the property’s ability to save money rather than its ability to generate revenue.

• Eco-home mortgage rates tend to be higher than those offered by conventional banks.

• Eco-home mortgage terms are shorter than those offered by conventional lenders.

• Eco-mortgages are usually offered at fixed rates.

• Eco-loans are usually offered at variable rates.

What are the benefits of getting an eco-home mortgage?

Eco-mortgages offer several benefits to both the borrower and the lender. Some of these include:

• Lower monthly payments.

• Higher returns.

• Less risk.

• More flexibility.

• Lower interest rate.

• No need to repay the entire amount before selling the property.

If you are interested in mortgages for eco-homes, you can contact our team of specialist mortgage brokers.