Encouraged by Chancellor Gordon Brown’s “Green Initiative” more banks are promising to offer “Green Mortgages”. These mortgages provide incentives for home owners to take out extra finance in order to reduce the environmental impact of housing. For example the benefits of insulating roof and cavity wall insulation are quite high in terms of reducing energy. However the benefits can take along time to pay back. Therefore adding the cost onto a mortgage is an ideal way of making it affordable.
Green mortgages may also be given only to those houses that are environmentally beneficial. Some financial institutions may make a small donation to green charities as part of the mortgage deal.
Green mortgages are likely to increase in the future as more people become conscious of environmental issues.
Ecology Building Society.
The Ecology building society has been in operation for 25 years offering mortgages to those who want to promote environmental issues. It will only lend to buy houses, which have some environmental benefit. Borrowers can get 1% off the SVR for using to reduce energy emissions.
The Cooperative bank says it has been offering green mortgages for the past 7 years, providing incentives for home-owners to get environmentally friendly improvements