Green mortgages

A growing number of people are showing an interest in so called ‘green mortgages’. These are provided by a relatively small number of lenders. The Ecology Building Society, The Co-operative Bank and The Norwich & Peterborough Building Society are three lenders that have opted to offer loan products that aim to help preserve the environment.

How are they green?

Lenders will help the environment through a number of different approaches. Some will make donations to ecological projects on behalf of borrowers. Some will aim to offset their carbon footprint by planting trees for each loan that they make. A more radical approach adopted by one lender is to only lend money on properties that are energy efficient and built from sustainable materials.

The Co-operative Bank for example donates directly to Climate Care, an organisation devoted to projects that not only preserve but reclaim lost, damaged or threatened environments. 

Most green lenders adopt a socially responsible approach to their business; adopting a fair approach to treating suppliers and avoiding working with businesses that pollute the environment.

Although the lending side of the market does not appear to be as advanced (along the road to social responsibility) as the investment market there are some obvious reasons why green mortgages have increasing appeal.

Are green mortgages competitive?

There are mixed views on how competitive green mortgages can be. As with all loans it will depend on your requirements, your circumstances and to an increasing extent the property that you wish to finance. The Ecology Building Society specialises in loans for properties built entirely from sustainable materials and may be competitive in that sector. Whilst green lenders are generally viewed as competitive they are not market leaders on price.

Truestone will be happy to provide you with a quotation for a loan from a green or socially responsible lender please call us on 0845 362 8428 or email us.

Your home may be repossessed if you do not keep up repayments on your mortgage.