Green mortgages are energy efficient mortgages that have been discussed since the early 1980s. It s possible to have energy-efficient improvements made to your home and included in your mortgage repayment schedule. This should be discussed when arranging your mortgage. Energy efficient mortgages are available to most people applying for them, yet they are a little known mortgage option.
Advantages of Energy Efficient Improvements
Green home improvements can save you a great deal of money. It is possible to reduce your utility bills by 50% while making your home a healthier environment to live in. Green mortgages help you to achieve that by including the cost of installing energy-saving equipment in your mortgage.
Rather than paying the total cost as a lump sum, you can have it added to your mortgage principal. Some lenders will offer you a larger loan on the basis of such energy efficient improvements. That is because the value of your home will increase when they are installed. You are more likely to make a good profit when you eventually sell your home if you have invested in such energy efficiency equipment.
An Energy Audit Pays
In order to apply successfully for a green mortgage you will first have to carry out an energy audit. A professional environmental auditor will examine the property you intend to purchase and suggest where money can be saved. The audit will also highlight equipment that can be installed to maximize the energy efficiency of your property.
This is necessary so that the lender can find out whether or not the energy efficiency of your property can be improved, and if so, how. The auditor will provide estimated costs for the equipment, and these costs can be added to your mortgage offer. The cost of the energy audit can be added to the mortgage principal, although you may be able to claim a rebate on this sum.
Examples of Projects Qualifying for Green Mortgages
The following improvements to a property can qualify you for green mortgages:
- Insulation: attic, wall cavity, and door and window seals.
- Solar panels: roof or frame mounted solar panels used to generate electricity for your home.
- Lighting: replacing traditional lamps with LED or other forms of energy-efficient lighting.
- Heat pump installation.
- Other forms of energy saving.
The list is fairly long, but check before you begin any installation to make sure it is covered. Not everything will be included, so it is important that you are certain any energy-saving equipment or devices you install are included in the conditions of the green mortgage.
It is worthwhile installing such equipment and having it included in your mortgage principal. Not only will you not have lump sums to pay for the equipment (or repayments at high interest rates), but your utility bills should be lower due to the savings in energy usage.
Green mortgages are well worth considering. Any forms of energy efficient mortgages will save you money, both in terms of lump sum payments for capital equipment and also in utility bills The latter should drop significantly if you make the right choice of energy efficient equipment.