The Green Finance Institute is the UK’s leading interface between the public and private sector when it comes to identifying areas of improvement and deploying strategies that lead to real change in the way that we tackle climate change.

One of their proposals is to reform the way the stamp duty land tax (SDLT) is paid in the UK. They say that home purchasers could claim a rebate in SDLT if improvements are made to their home within a two-year window of purchasing the property. Many mortgage lenders have backed the proposal.

2021 has seen a big increase in the number of ‘Green Mortgages’ available. These mortgages incentivise you by offering a lower rate if your property has an Energy Performance Certificate (EPC) of Grade ‘C’ or better. If your home is currently a ‘D’ grade, you might be surprised just how simple a change might need to be made to get into the ‘C’ category. If you don’t have an EPC at the moment, you’ll be pleased to hear that they aren’t expensive. You should expect to pay around £35 to £60 for one.

This new proposal has sparked the question; Could homeowners be rewarded by their lender for making green improvements to their property mid-term? this would be a fantastic way for individuals to do their bit and see a long-term saving as a result. It gets our vote!

Currently, we’re seeing interest rate improvements of around 0.1% for Green Mortgages. Whilst that doesn’t sound like much, one needs to bear in mind that we’re currently enjoying the lowest interest rates we have ever seen and in some cases this 0.1% represents a saving of 8% over the normal rate you would be paying. Well. When you put it that way it doesn’t sound half bad!

If you would like to know more about Green Mortgages, please get in touch with one of our experts today who would be delighted to talk you through the products and suggest ways of improving your home’s green credentials.

Article by Tom Collier