As energy efficiency becomes an increasingly important topic across the UK, the Energy Efficiency Mortgage Initiative has launched a pilot scheme of the product to help create a more robust framework for a broader future rollout.
The pilot scheme will see energy efficiency mortgages become available through a number of well-known existing mortgage lenders. Where a home is more energy efficient, the lender could be able to agree a higher mortgage as the future home-owner’s monthly energy bill commitments will be lower.
“Energy efficiency is something that is great for the environment, but it’s also an excellent way of saving money,” said Wimbledon estate agent, Robert Holmes. “A product that can reward your efforts by potentially offering you a slightly bigger mortgage loan due to the cost savings related to your energy efficient home is something that a growing number of people could benefit from.”
Incentive to improve home energy efficiency
As well as working to reward those who buy or have created a more energy efficient home. The availability of a mortgage tied to the energy efficiency level of your home could also be an incentive for more home owners to make energy efficiency improvements.
Where someone’s looking to remortgage and withdraw some equity, a few updates could increase the amount they could take out. And, for those who are selling their home, if they were to make some key energy efficiency changes, they could attract a wider range of buyers who would benefit from those improvements with an energy efficiency mortgage.
The mortgages are available from a variety of lenders popular in the UK, including Barclays, ING Bank, Société Générale and BNP Paribas.
“Promoting energy efficiency mortgages is something that could help the financial services sector, the energy efficiency industry and home buyers and owners, alike,” they say at M&M Property.
Simple ways to make your home more energy efficient
For older homes, built around 30 or more years ago, its possible that there are quite a few ways to improve their energy efficiency rating.
One is to install cavity wall insulation. By filling the gap in hollow walls, you could save up to £250 per year on your heating bills, that’s a lot of money that will see you recoup your investment over a relatively short period of time.
Loft insulation is another winner with older homes. By insulating your roof space, you limit the heat that can escape through the roof and keep more heat in your home. This could also save you in the region of £240 per year.
Other ways to become more energy efficient include:
- Swap your existing lightbulbs for energy efficient ones.
- Turning your heating thermostat down by just one degree can save up to £85 per year.
- Switching off lights when they’re not needed and also turning electrical items off at the plug.
“Energy efficiency is an increasingly important detail and any reward or incentive for those who work hard to ensure their home is as energy efficient as possible will be welcomed by an increasing number of home owners,” claim at LDG.