As the world becomes increasingly focused on environmental sustainability, it’s no surprise that green initiatives are popping up in all sorts of industries. The mortgage industry is no exception, with lenders now offering green buy-to-let deals to encourage landlords to invest in energy-efficient properties.
This is a win-win situation for both landlords and tenants, as properties with lower energy consumption tend to be more affordable to run. In addition, green buildings often have a higher resale value, so landlords can expect to see a healthy return on their investment.
According to a recent broker’s survey, 62% of landlords stated their interest in green mortgages. These mortgages often reward borrowers with discounted rates and longer repayment terms for making their existing properties more energy-efficient or purchasing energy-efficient properties.
At the moment, much of the UK’s housing is energy inefficient. With a green mortgage, the lender will recalculate the mortgage rates with a discount once the owner can provide evidence that they have improved the energy rating (EPC) for the property.
There are several ways you can increase your property’s energy rating, including installing double-glazed windows and doors, upgrading your insulation, replacing your boiler, using energy-efficient lighting or installing solar panels.