What Is A Green Mortgage And Its Benefits?
A green mortgage is a type of mortgage designed to incentivize environmentally friendly practices, typically related to energy efficiency and sustainability in homeownership. The purpose of a green mortgage is to encourage homeowners to make their properties more energy-efficient and environmentally friendly.
Benefits of a Green Mortgage
- Energy Efficiency Improvements: One of the primary focuses of green mortgages is to support and finance energy-efficient improvements in homes. This can include the installation of solar panels, energy-efficient heating and cooling systems, insulation upgrades, double glazing, and other measures that contribute to reducing the environmental impact of the property.
- Financial Incentives: Lenders offering green mortgages provide financial incentives to borrowers who invest in energy-efficient improvements. By qualifying for a green mortgage you will have access to the lowest rates on the market. The cost of your energy bill will also greatly reduce if your property has a sufficient energy rating (B3 or higher).
What properties are eligible for a Green Mortgage?
Green mortgages are available for both new and existing properties. For existing homes, the focus is often on encouraging retrofits and improvements to enhance energy efficiency. To be eligible for a Green Mortgage the property must have an energy rating of a B3 or better.
What documents are required for a Green Mortgage?
If you are purchasing a new property, the estate agent will provide a copy of the BER certificate confirming the energy rating. If you have recently upgraded your property and the energy rating is B3 or better, you will need to carry out a BER (Building Energy Rating) inspection on the property. The cost of this ranges between €150 to €300 depending on the size of your property.
How long is a BER certificate valid for?
BER certificates are valid for 10 years.
How to switch lender to get a Green Mortgage?
Contact Park Financial Planning today and we will be able to help you switch your mortgage to avail of the lowest rate on the market. You will need to provide some documentation to submit your application to the lender.
Some lenders now offer to pay a contribution to customers towards their switching fees and this payment normally covers the cost of switching lender. So, in many instances, switching lender will not cost you anything.
What are the lowest interest rates available for Green Mortgages?
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