Government Launches Green Home Mortgage Fund

The Government has today announced plans to launch a Green Finance Strategy Fund which will also assist in the development of ‘Green’ home mortgages.  These types of mortgage could see households save on their energy bills and reduce emissions when buying a ‘green’ home as well as the actual mortgage itself. 

In addition, for existing homeowners, if you improve your home with e.g. Energy Performance Certificate (EPC) to C and above, a ‘green’ mortgage may secure you a discounted mortgage rate.

Green Finance Strategy Plans include:

• £10 million innovation fund be available to improve older homes.
• £5 million fund to assist the financial sector in developing green mortgages and home finance products.
• £5 million fund to increase the number of green mortgages and encourage households to upgrade the energy efficiency of their home
• The government want to improve energy efficiency of 17 million homes, and become a net zero emissions economy.

For a chance to win a share of a £10 million innovation fund offered, the government is asking for companies to design ways of reducing costs in refurbishing UK’s older properties.  The government wants the UK to get to net zero emissions by 2050 and to improve homes with EPC ratings below B and C.

Chris Skidmore Energy and Clean Growth Minister commented: “The Green Mortgage will encourage people to refurbish their properties and make their homes more energy efficient and save money”.  15% of the UK homes are responsible for carbon emissions and the government has said it would make buildings cleaner and greener for the future.

The Green Home Finance Innovation Fund (GHFIF) supports looking into products like equity loans and home improvement loans to help homeowners improve their properties.  An essential part of the government’s Modern Industrial Strategy is helping the UK move forward to a cleaner and greener economy and they will also ask the Green Finance Institute (GIF) in assisting them to provide finance for buildings and addressing energy efficiency.