Green mortgages
Green finance represents a dynamic and expanding segment within the mortgage market, offering a forward-looking opportunity for homebuyers, homeowners, and Buy-to-Let landlords. A property that qualifies for green finance would potentially facilitate lower energy bills but also contributes positively to environmental sustainability.
These green finance solutions are designed to incentivise investments in energy-efficient homes or enhancements to existing properties. Benefits may include cashback offers or lower interest rates. With an increasing number of lenders entering this arena, we at Fitch & Fitch encourage you to explore the diverse options available with our green finance specialists.
Why consider green finance now?
The surge in green finance options is driven by several key factors. Homes in the UK are significant contributors to energy consumption and greenhouse gas emissions. As a result, properties with lower energy ratings may face future regulatory changes and higher energy costs.
In line with the UK’s commitment to achieving net zero by 2050, new regulations in the Buy-to-Let sector demand energy performance certificate ratings of C or above for new tenancies. This legislative shift underscores the urgency to upgrade the housing stock. Moreover, lenders are increasingly looking to minimise their environmental impact and exposure to assets considered environmentally detrimental.
Fitch & Fitch is here to guide you through the opportunities presented by green finance in property and Buy-to-Let investment.