Green Remortgages

Green Remortgages / Mortgages have been on the UK mortgage market for more than 10 years, originally they were only offered by smaller specialist financial providers.

Now as the government concerns itself more and more with the environment and the global carbon footprint, there is a growing need for more financial institutions to offer environmentally friendly products for home owners.

Green remortgages are also known as:

• energy efficient remortgage
• ecological remortgage
• sustainable remortgage
• ethical remortgage

Financial Transparency

Gone are the days when mortgage companies invested their consumers savings into companies following bad practices or people with bad records of human rights.

Today's consumer is more conscious than ever about their environment, which is why Remortgage ABC provide you with information about green remortgages.

Green remortgage plans work with the sole aim of helping and contributing towards the environment. Thus, right from the time you sign up for a green remortgage plan to the time the remortgage tenure ends, you are always kept in the loop as to how the money is being invested to help the environment.

Types of Green Remortgages

Through donations:
In this kind of green remortgage, a donation is made to an ecological cause on the client's behalf. This donation is made during the tenure of your remortgage plan. This donation is largely carried out to plant an increasing number of trees.

Subsidies:
In this kind of green remortgage, the interest rate on your remortgage will depend on how energy efficient the property is. If your property is more efficient on the energy front it will reduce the interest rates.

When comparing the donation to the subsidy remortgage packages, the latter is more useful for you as a borrower. Given the fact that green remortgages are more expensive compared to conventional mortgages, it makes sense to make donations directly to charity organisations for planting more trees.

The subsidy green remortgage benefits you as well as the environment because the interest rate is reduced depending on how energy efficient your property is.

This saving in reduced interest rates can then be channelled towards home improvements or other personal projects. If your home improvement projects are going to be used for reducing energy in the home, then remortgage providers will be willing to lend you even more money.

Property Considerations

If you own an old property then it will typically not have an Energy Performance Certification. Only if you have a new or fully restored / renovated property should a certification be allocated / applied for.

In this manner, you can only obtain green remortgages when you have a new property and not otherwise because there is no way to monitor the energy efficiency of your property.

If you have a property, which uses renewable energy sources like solar panels, biomass heaters, wind turbines etc. then your property qualifies as a sustainable property.

With this type of house, you are contributing to a more eco-friendly environment by reducing carbon emissions dramatically. With such an approach your property is bound to be more energy efficient and you probably qualify for lower mortgage rates.

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