Spring may seem tantalisingly far off, but the New Year is already inspiring people to think about moving home, or getting a foot on the property ladder before April’s upcoming changes to stamp duty thresholds. As the market warms up, Aspect Mortgages, based in Chorley, Lancashire, is highlighting sustainable property options to consider, which could lead to significant reductions in mortgage payments for buyers.
Founded in 2004, Aspect provides impartial mortgage, insurance and financial advice, building one of the regions and sector’s most enviable reputations, with hundreds of consistently 5* Google reviews. Husband and wife co-founders Richard and Rachel Gill, who now lead a team of seven, have been tracking the growing trend in ‘Green’ mortgages, using their research and expertise to advise potential mortgagees on the increasing range of sustainable savings available.
“We’ve found the majority of people are, as yet, unaware of the significant sustainable savings available, which we’re determined to change,” says Richard. “With benefits for reducing your carbon footprint, heating waste, and utility bills, as well as mortgage payments, it makes sense all round to include the energy efficiency of your prospective or current home, and any capacity to upgrade it, in your considerations.”
Green mortgages reward people for living in an energy-efficient home, with cashback or a better mortgage interest rates for homes with an EPC rating of A or B. Lenders are increasingly offering incentives of this nature because in an era of combating climate change, energy-efficient properties are seen as less risky purchases, more likely to hold their value, and, with their homeowners spending less on energy bills each month, less risk of defaulting on mortgage repayments.
Worryingly, the majority of homes in the UK are rated EPC D, with more than half (53%) of homeowners recently questioned unaware of their home’s rating, and 62% with low or no understanding of the system. However, the majority (68%) said improving EPC ratings is a worthwhile investment to save on energy bills and improve the value of their property.
“With greater focus on climate action, plus the impact of utility costs on living expenses and household budgets, energy efficiency is an increasingly worthwhile consideration,” advises Richard. “With Halifax, for example, now incorporating EPC ratings into mortgage affordability calculations as standard, the UK’s green mortgage market has already grown from just 4 products on offer in 2019 to more than 60 today. The first mortgage Aspect arranged this year was a green one, the first of many to benefit buyers, I hope.”
With an average saving on annual energy bills of £723 simply by upgrading from EPC D rating to C, savings are available to those looking to stay in their own homes, too. Practising what they advise, Aspect celebrated 20 years in business in 2024 by making energy-efficient upgrades to their offices, and are now enjoying monthly gas bill reductions from £550 to £180.
“Lenders are recognising the value of ‘green’ home improvements, offering rewards for upgrades like installing double-glazing, upgrading heating systems and insulation, or installing solar panels,” says Richard. “This opens up upgrade opportunities for those considering a lower-rated property purchase, or remortgaging their current home. Whatever the temperature outside, the green mortgage market is definitely hotting up!”
