Yesterday, Saturday 5th June, marked World Environment Day 2021. Understandably, for most people this will have passed by without notice as the hectic nature of everyday life takes over. At Ferro, we decided this was the perfect time for us to begin our green initiative to make a positive contribution towards the environment and ensure we are carbon neutral as a business. Going forwards, we’ll be working in partnership with Moretrees.eco who fund various tree planting projects around the world. At the end of every month, for every client whose mortgage has completed through us, we will fund the planting of five tree through Moretrees.eco. This will off-set around 1.5 tonnes of CO2 which is equivalent to over 5,000 kilometres in a standard car.
The following extract comes from the Moretrees.eco website emphasising the benefit of reforestation:
“Carbon dioxide is one of the biggest drivers of climate change, which makes forests one of our greatest solutions.
Trees capture and absorb carbon dioxide from the air while releasing oxygen in its place. And, their size, root systems and long lifespan mean they can do this at scale – offsetting the emissions you can’t reduce and helping us save our planet for generations to come.
Planting trees also brings numerous co-benefits, including shelter, water filtration, biodiversity and poverty alleviation.”
So how can Mortgages be more environmentally friendly?
Whether it’s recycling household waste, purchasing energy-efficient appliances or installing solar panels, we all know how we, individually, can help do our bit for the environment around our homes. Mortgage lenders are normally huge organisations and they too have a duty to reduce their impact on the environment and the following represent some of the ways in which they do this and incentivise this:
- Energy Performance Certificate (EPC) Ratings – Most lenders won’t provide mortgages on properties below a certain EPC rating. While this is in part to do with the saleability aspect of the property, it does incentivise sellers to improve the energy efficiency of these homes before putting them on the market and that can only be a positive for the environment.
- Green Mortgages – Lenders have begun rolling out ‘Green Mortgages’ which have varying benefits from lower interest rates to additional cashback. These are generally available on properties with a A or B EPC rating to incentivise buying energy efficient homes. The UK Government National Statistics state that residential properties in the UK make up 15% of our total climate emissions so having an energy efficient home is one step towards doing your bit!
- Paperless – While far too much paper is still involved for all parties in a house purchase transaction, we are seeing a reduction in this from mortgage lenders and the option for us, as a broker, to go paperless is easy! With conveyancers and lenders launching online portals or apps for clients, this is helping minimise paperwork to the essential documents only and will hopefully be the way forward for all.
- Cashback Incentives – There are now lenders who will offer a generous cashback incentive if you can show that you’ve reduced the EPC rating of your property after you’ve moved in. While these may not always be the cheapest product, if you do choose this product, it’s a win, win making your home more energy efficient!
If you want to know if your home would be eligible for a green mortgage or you’re looking for a lender who’s making a conscious effort to reduce their carbon footprint, let us know and we can see what products there are available to you. Remember, the more energy efficient your home, the less you should be spending on your energy bills.