Choosing an energy-efficient home could be more rewarding than ever if you take out a green mortgage, which offers benefits for buying a home with an excellent EPC rating. We explain what a green mortgage is and the benefits to you as a home buyer, as well as the types of older properties and new-build homes that could be eligible.

What is a green mortgage?

An increasing number of UK mortgage lenders are rewarding buyers for choosing to buy energy-saving homes, by offering ‘green mortgage’ products with lower interest rates or cashback benefits on properties that meet a minimum EPC (energy performance certificate) rating.

These could be older houses that have been upgraded to meet the highest EPC ratings, or new-build homes that are constructed using modern materials and building techniques to make them highly energy efficient.

What are the benefits?

The benefits of a green mortgage will depend on the lender, but they’re often more rewarding when you buy a home that has an EPC rating of A or B, the two highest ratings possible. You may be offered a lower interest rate, or cashback when you take out your green mortgage.

As 99% of new-build Bellway homes hold an EPC rating of B or above, a green mortgage could be a great way to make a brand-new home even more affordable.

Which lenders offer green mortgages?

Major UK high-street mortgage lenders such as Barclays, NatWest, and Nationwide are among the lenders offering access to green mortgages.

If you’d like to learn more about green mortgages, the products currently available, and whether one might be right for you, you can speak to an independent mortgage advisor for qualified expert advice that’s tailored to your circumstances. If you’re interested in buying a new-build home, the New Homes Mortgage Helpline (NHMH) is Bellway’s first choice for specialist support with finding your most suitable mortgage*.

What do you need to do to qualify for a green mortgage?

To be eligible to apply for a green mortgage, the home you want to buy must meet a minimum EPC rating as set by the lender, which is typically the highest possible ratings of A or B.

Each mortgage lender offering a green mortgage product will have their own terms and conditions and eligibility criteria, so speak to your chosen lender or an independent mortgage advisor to find out what is available to you.

How energy-efficient are new-build Bellway homes?

99% of all new homes built by Bellway hold an EPC rating of B or above for energy efficiency - for comparison, just 5% of second-hand homes hold the same rating. The average new home emits just 1.22 tonnes of carbon per year, which is 65% less than a comparable pre-existing property.

The superior energy-saving characteristics of new-build homes are part of their very fabric, as the properties are constructed using energy-saving insulation, which traps warmth and drives down running costs. What’s more, the insulation material contains a high level of recycled bottle-bank glass, which is great news for the environment too.

Bellway homes are fitted with innovative heating, hot water and lighting technologies, which will save you up to 50% on these utility bills, or around £979 per year. So, the financial benefits of choosing a new-build Bellway home could begin with getting a great deal on a green mortgage, and continue long after you’ve moved in.

Visit the Bellway website to find out more about green mortgages, read about the many further benefits of buying new, and search for your nearest development of energy-efficient Bellway homes. You can also discover lots of helpful information about the home-buying process on Your Nest, including a guide to EPC certificates, and our ultimate house-viewing checklist to help you determine whether a property is right for you.

*Please note: Bellway may receive a commission when you complete on a mortgage arranged by the New Homes Mortgage Helpline.