Retro-Fit Mortgage

A green mortgage that rewards you for improving the energy efficiency of your home!

The Retro-Fit Mortgage

It is true to say we are all worried about the environment, but it is also true that we don’t necessarily know how we can change our lives to help to save the planet. Green finance is not new, and there is no shortage of green mortgages in the UK. But which one is right for you – and the environment?

About Green Mortgages:

Green mortgages or Green Home Loans take many forms across different lenders. With many, the rewards come in the form of fixed-rate discounts if you purchase a brand-new home or construct a self-build eco home. Whilst this is great, what if you cannot afford to buy a home with an EPC rating of A to C or have no expertise in home construction?

Why do we need Green Mortgages?

Our homes produce 15% of the UK’s carbon emissions according to a 2018 UK government report. This is due to the UK housing stock being some of the least energy efficient homes in the western world. Our older homes were not built to be energy efficient, meaning that standards we expect of new builds do not apply to older homes. In reflection, this will often mean that the homes are more affordable to purchase, but less efficient to run.

With rising energy prices and the focus shift on global warming and CO2 emissions boosted by COP26, we are now opening our eyes to our personal impact on the environment. A green mortgage, eco mortgage, self-build eco home mortgage, or green home loan – however you see them advertised – are a great step to understanding and positively affecting your home’s impact on the environment whilst saving money too. 

Our Retro-Fit Mortgage:

Our Retro-Fit Mortgage was launched to be different to other lenders offerings around Green Finance and is more than just a UK green mortgage. With the Retro-Fit mortgage, you are rewarded by making simple but effective improvements to the home you want and more importantly can afford. The mortgage rewards you for improving the EPC rating of your home – whether a purchase or a remortgage. 

Key Features of the Retro-Fit Mortgage:

• Carries a fixed-term interest rate equivalent to purchase or remortgage mortgages from Saffron Building Society.
• Offers a rate reduction accessed by improving the EPC rating of the home, if successfully achieved within 6 months of purchase or remortgage.
• Encourages the improvement of the EPC rating and the energy efficiency of older housing stock.
• Rewards the borrower for improving the energy efficiency of the home, which can also help to combat the effects of the cost of living rise.
• Is supported by EPC, energy efficiency, savings, and financial wellbeing resources available to all Saffron Building Society members.

Improving the EPC rating of your home:

To take advantage of the discount available from the Retro-Fit mortgage, the EPC rating of the home needs to be raised above an E. What can homeowners do to improve their energy efficiency and benefit from an improved green home? 

Here are 5 top tips to improve your EPC rating:

• Add additional or higher quality loft insulation to 270mm
• Add cavity wall insulation
• Replace old, inefficient boilers 
• Install double glazing – or internal glazing if a listed or restricted building
• Install energy-efficient lighting
   

Making your home green does not have to be difficult and can save money on your energy bills, too. But just how much…

A typical 3-bed home, improving from a G to E rating could save up to £200 per year on energy bills. This can increase to £300 per year if improved from G to C.

To find out more about your home’s energy efficiency and to find an EPC rating calculator, visit the Energy Savings Trust community Home Check here.

Key points for our Retro-Fit Mortgage

•    Free Valuation Fees. Full details can be found here.
•    Minimum age 21
•    Interest only or repayment
•    Interest only to 70% max LTV and subject to an acceptable repayment strategy
•    Minimum loan size £30,000
•    Maximum loan size £3,000,000