£5 million to increase number of green mortgages

Households could cut mortgage rates, save money on their energy bills and reduce emissions from their homes under plans to roll out green mortgages.

Ahead of the launch of the Green Finance Strategy, the government has announced a £5 million fund to help the financial sector develop green home finance products, like green mortgages, which give customers discounted mortgage rates once they have upgraded the energy rating of their home.

Homes are currently responsible for 15 per cent of the UK’s carbon emissions, and as the UK moves to a net zero economy, the government has committed to making more buildings cleaner, greener and fit for the future. Therefore, the government also announced it would offer industry the chance to win a share of a £10 million innovation fund if companies design innovative ways of reducing the cost of retrofitting the UK’s old housing stock.

Chris Skidmore, Energy and Clean Growth Minister, said: “To fulfil our world-leading commitment to reach net zero emissions by 2050, we need an overhaul of our housing stock to tackle the disproportionate amount of carbon emissions from buildings. By rolling out more green mortgages and reducing the costs of retrofitting older homes we’re encouraging homeowners to improve the efficiency of their homes and save money on their energy bills, helping to ensure everyone has access to a warm and comfortable home.”