What are green mortgages and how could one benefit you?
The financial benefits of choosing to buy a new-build Mulgrave home could begin with getting a great deal on a green mortgage, and continue long after you’ve moved in.
Just over half (52%) of mortgage lenders are rewarding buyers for opting for energy-saving homes, according to broker Mortgage Advice Bureau, by offering buyers green mortgage products with lower interest rates or cashback benefits on properties that meet a minimum EPC (energy performance certificate) rating.
Additionally, certain lenders are offering improved availability assessments, which means you could borrow more.
Energy efficient homes are typically those with an EPC rating of either an A or B.
EPC is a rating scheme which bands properties between A and G, with an A rating being the most efficient and G the least efficient. It’s estimated that over half of the UK’s housing stock remains below a C rating.
While buying a poor EPC-rated home will typically result in higher energy bills, it could also prevent you from accessing some of the cheapest mortgage rates on the market.
As Mulgrave homes hold an EPC rating of B or above, a green mortgage could be a great way to make a brand-new home an even more affordable choice.
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 Mulgrave home, contact our sales team for specialist support with finding your most suitable mortgage.
What are the best green mortgage deals?
Barclays recently announced a market leading 3.96 per cent five-year fixed rate ‘green deal,’ which comes with an £899 fee. It’s only available to those buying a new-build home directly from the builder or developer, and the property must have an Energy Performance Certificate rating of A or B.
The lowest non-green equivalent is 4.06 per cent. On a £200,000 mortgage, this could mean the difference between paying £1,063 a month and £1,051 a month.
While the 3.96 per cent rate is available to those buying with at least a 40 per cent deposit, lower priced ‘green’ options are also available to those buying with smaller deposits.
For example, when buying with a 10 per cent deposit, you could fix for five years at 4.52 per cent with Barclays.
How energy efficient are Mulgrave homes?
There are a number of factors that have an impact on the eco-efficiency of a new build home, including energy-saving insulation, which traps warmth and drives down running costs, high quality double glazing, and carefully considered floorplans that include strategically placed ventilation and air circulation.
Meanwhile, older homes face extensive and costly renovations to achieve an equivalent benchmark, with the expense of cavity wall insulation upgrades alone averaging £8,000.
Mulgrave homes are fitted with innovative heating, hot water and lighting technologies, which could save you up to 50% on these utility bills, or around £979 per year.
Our homes on the North Yorkshire Coast near Scarborough are fitted with PV solar panels, meaning you could further benefit from selling your excess electricity back to the grid.
Read about the many benefits of buying new and search for your nearest development of energy-efficient Mulgrave homes. Contact our sales advisors for more information about the home-buying process and to help you determine which of our properties is right for you.
