The UK’s green mortgage market is showing signs that it is ready for lift off. Encouraged by the innovation of peers in this space, banks and building societies in the UK are launching green mortgage products at an ever increasing rate. Green Mortgage products come in a variety of different forms, but all aim to incentivise homeowners to invest in improving the energy efficiency of their properties.

The opportunity for lenders in this space is huge. The UK Committee on Climate Change has estimated that £250 billion needs to be invested in UK home upgrades by 2050, which means there is the potential for significant capital flows in green mortgages in the coming years. Meanwhile, there are other levers in play, with policy makers, NGOs and financial regulators increasingly demanding that lenders examine the energy efficiency of their mortgage portfolios.

The aim of this page is to provide a holistic overview of the Green Mortgages in the UK. This page is aimed at stakeholders who are focused on the built environment and how to finance the decarbonisation of the sector.

The CEEB invites any Financial Institutions who have recently launched a green mortgage product in the UK that they believe should be listed in the table below to get in touch with CEEB@gfi.green.

UK Green Mortgage Products

Company Name Product Name Link to Product Launch Year Features of product Validation required? Type of Building or target market EPC Target Aligned or supporters to the GHFPs? Featured
Low-interest rate mortgage for new and/or existing customers Additional borrowing for new and/or existing customers Cashback/ Refund for new and/or existing customers Energy Efficiency of renovated/retrofitted property must be improved Property purchased or built must be energy efficient
AIB Green Mortgage Rate Feb-20 Yes Yes Yes EPC must be submitted at the stage of application. New Builds and Existing Homes A/B
Barclays Green Home Mortgages 2018 Yes Yes EPC Certificate must be submitted at the stage of application. New Build A/B; 81 SAP
Coventry Building Society Green Together Reward Sep-21 Yes Yes Prior to the cashback being paid out, the claims will be validated through TrustMark to verify that the works have been undertaken. Residential and Buy-to-Let Yes
Coutts Green Mortgage Jun-21 Yes Yes The client is asked to send across a copy of the EPC certificate. To validate, bankers are also instructed to enter the RRN code on epcregister.com to check the EPC Grade. Existing Homes or New Build A/B Yes
Coutts Retrofit Green Mortgage Jun-21 Yes Yes Yes The client is asked to send across a copy of the EPC certificate. To validate, bankers are also instructed to enter the RRN code on epcregister.com to check the EPC Grade. A/B/C Yes
Dudley Building Society Two Year Fixed Energy Efficient Remortgage Jun-21 Yes Yes Yes Quotes of how the borrower intends to improve the EPC rating must be evidenced. Residential Homes A/B Yes
Dudley Building Society Three Year Fixed Rate Energy Efficient BTL Remortgage Jun-21 Yes Yes Yes Quotes of how the borrower intends to improve the EPC rating must be evidenced. Cashback must be used to improve EPC band. Buy-to-Let A/B/C Yes
Dudley Building Society Two Year Discount Energy Efficient Further Advance Jun-21 Yes Yes Yes Indicative list of accepted home improvements provided. Existing Homes N/A Based on qualifying works Yes
Dudley Building Society Eco Self-Build Discount for Term - Advance 2020 Yes Yes Plans of how the EPC rating will be incorporated into the plan must be evidenced. Self-Build Anticipated A or B Yes
Dudley Building Society Eco Self-Build Discount for Term - Arrears 2020 Yes Yes Plans of how the EPC rating will be incorporated into the plan must be evidenced. Self-Build Anticipated A or B Yes
Ecology Building Society C-Change Discount: Sustainable Homes Discount 2006 Yes Yes Yes Discount applied once confirmation that property is completed and final energy certification is provided. Self- and Custom-Build, Existing Homes, Conversions Minimum A/B (88 SAP for self- and custom-build and 85 SAP for conversions) Yes
Ecology Building Society C-Change Discount: Retrofit Discount 2006 Yes Yes Yes Yes Discount applied based on the scale of improvements in the EPC rating and once final energy certification is provided. Renovations Improvement in the EPC rating Yes
Ecology Building Society C-Change Discount: Energy Improvements Discount 2006 Yes Yes Yes Discount applied to value of qualifying works for energy efficiency improvements. Existing Homes, Renovations N/A - based on qualifying works Yes
Foundation Home Loans Green Reward Mortgage Feb-21 Yes Yes Cashback upon completion and a reduced product fee. Buy-to-Let A/B/C
Halifax Green Living Reward Mar-21 Yes Yes Cashback when homeowners make one or more eligible home improvements using a TrustMark registered supplier; Customers must have registered for the reward by 31st May 2021. Existing Homes A/B/C
Hinckley and Rugby Building Society Green Mortgages Jul-21 Yes Yes Yes At least 50% of additional funds borrowed must be spent on specified list. Buy-to-Let and Residential Yes
Just Group Green Lifetime Mortgage Feature Jul-20 Yes Yes Yes EPC must be submitted at the application stage. All customers will receive cashback when the advance completes to contribute to cost of EPC. Existing Homes
Kensington Mortgages eKo Cashback Mortage Feb-21 Yes Yes Yes Evidenced increase of at least 10 SAP points required to qualify. Up to 12 months to make the energy improvements and claim cashback reward. Cash paid upon qualification. Existing Homes and Buy-to-Let
Landbay Green Mortgage Range Jun-21 Yes EPC must be from within the last 24 months. Buy-to-Let A/B/C
Leeds Building Society Green 2 Year Fixed Rate Mortgages Sep-21 Yes Yes Yes Cashback paid at completion when an up-to-date EPC of A or B can be evidenced. New Builds, Existing Homes and Buy-to-Let A/B/C Yes
NatWest Group Green Mortgages Oct-20 Yes Yes Yes Cashback paid to solicitor on day customer drawdowns mortgage. Existing Homes A/B Yes
Nationwide Building Society Green Additional Borrowing Mar-20 Yes Yes Yes At least 50% of borrowing must be spent on energy efficiency improvements (specified list). Existing Homes
Nationwide Building Society Green Reward Apr-21 Yes Yes Two weeks after the mortgage completes, Nationwide use the government register to look up the property’s EPC and check its score. New and Existing Homes A/B
Newbury Building Society GoGreen Further Advance Mortgage Jul-20 Yes Yes At least 50% of borrowing must be spent on specific energy efficiency improvements. Existing Homes A/B Yes
Newbury Building Society GoGreen Self-Build Mortgage Reward Jul-20 Yes Yes Refund half of the application fee paid at the start of the mortgage if an EPC of A or B can be evidenced within two years of the start of the self-build project. Self-Build A/B Yes
Paragon Bank Green Mortgages Jun-21 Yes Yes Buy-to-Let A/B/C
Paragon Bank Green Further Advance Range Jul-21 Yes Yes Buy-to-Let A/B/C
Saffron Building Society Retro Fit Mortgage Sep-20 Yes Yes Proof of energy efficiency upgrades (to minimum EPC E) required. If proved, customers will be given a discount on their monthly mortgage payments for the remainder of the two-year deal. Existing Homes A/B/C/D Yes
The Mortgage Works (TMW) Green Further Advance Mortgage Apr-21 Yes Yes Yes Client must spend 100% of additional borrowing on acceptable energy efficient home improvements. Checks may be carried out to ensure work has been completed. Buy-to-Let
TSB Green Additional Borrowing Mortgage Products Jun-21 Yes Yes A quote from supplier to confirm the green home improvements will have to be provided. Select energy efficiency improvements specified. Existing Homes Yes
Virgin Money Greener New Build May-21 Yes Yes New Builds

Pilots, initiatives & tools:

EeMAP Initiative
Market-led Initiative focussed on the design and delivery of an “energy efficient mortgage”. Intended to incentivise and channel private capital into energy efficiency investments.

Green Product: BNP Paribas, collaborating with E.ON to develop and pilot such a product.

Aligned with the Green Home Finance Principles.

The VALUER research project
A collection of industry partners working towards creating the first mortgages and additional borrowing offered in the UK that recognise home energy efficiency in their affordability calculations. Partners: Monmouthshire Building Society, RICS, Rightmove and Sero.

Green product: Monmouthshire Building Society’s Green Mortgage.

Santander: EnergyFact
A free, practical home energy report available for existing Santander mortgage customers with guidance to improve the energy efficiency of their home. Customers must have move home or have a mortgage with Santander; or borrow more money to carry out home improvements.
Halifax: Home Energy Saving Tool
For customers to create a personalised action plan for their homes. Existing customers and new customers all eligible.
Lloyds Bank: Eco Home Tool
Created in partnership with the Energy Savings Trust. For customers to create a personalised action plan for their homes.

Resources and market insights

Home energy efficiency and mortgage risks
The role of energy bill modelling in mortgage affordability calculations
Unlocking the potential of the UKs tree mortgage

Natwest Greener Homes Attitude Tracker Oct-21