Content Writer
Mortgage Advisor & Director
Green mortgage deals can offer a significant advantage to those with energy efficient homes. Some will even provide you with a lower interest rate for additional borrowing if you’re looking to make your home more energy efficient. We look at the types of rates that could potentially be available to you if you’re looking to purchase a green home, or to improve the energy efficiency rating of your current home to achieve a green mortgage deal.
Are the interest rates lower on green mortgages?
Most lenders offer lower rates on their green mortgage deals than on their equivalent non-green range. However, that won’t necessarily mean that you wouldn’t be able to find a non-green deal with one lender that was cheaper than a green deal with a different lender.
Overall, however, green mortgage deal rates are intended to attract customers towards buying greener homes, and reward them for having a more energy efficient property.
Additional borrowing on existing mortgages that is specifically used for the purpose of making energy efficient upgrades can be particularly competitive too.
If you’re able to bring your existing home up to the standard that most lenders require for a green remortgage with cheap or free additional borrowing - typically EPC grade A or B, you could potentially benefit twice from green rates.
What rates are currently available?
The table below shows examples of the green mortgage rates currently available.
|
Mortgage Lender |
Rates at 60-65% LTV |
EPC rating requirements |
Products Available |
|
Standard residential rate, cashback offered |
£250 on EPC rating of 86 or above £500 on EPC rating of 92 or above |
Green Reward Green Additional Borrowing also available at 0% |
|
|
3.94%(2 year fixed) |
EPC band A or B |
Green Mortgage |
|
|
4.34% (2 year fixed) |
EPC band A or B |
EEH (Energy Efficient Home) |
|
|
3.89% (5 year fixed) |
EPC rating of 81 or above (Band A or B) |
Green Home |
|
|
Standard residential rate, cashback offered |
£250 on properties with EPC band A or B |
Green Living Additional Borrowing also available (Green Living Rewards) |
|
|
3.3% - 3.6% depending on EPC rating (1 year HVM) |
A-G but the higher the BER, the lower the rate |
Ecosaver - rates also further reduced each time BER is increased through green home improvements |
*These rates were sourced in April 2025 but can change at any time
How to compare green mortgage rates
When you compare green deals, it’s important to know which type of green products you’re looking for, and have a good understanding of EPC ratings. One of the quickest and easiest ways to compare the rates available across the market is to speak to a mortgage broker with experience in green lending.
Their knowledge of green products, which EPC ratings each lender is looking for, and how to achieve them can be instrumental in finding the best and most suitable deal available to you. At Teito, we can search the whole market of green products quickly for you, including some broker-only deals that aren’t available to the general public. We also know which lenders are more flexible with their EPC requirements, and which will award green remortgage rates in anticipation of the EPC rating you’ll eventually achieve post-improvements.
You can book in a free, no-obligation chat with a broker who specialises in green mortgages below to get a whole-of-market rates comparison and expert advice:
Let us compare green mortgage rates for you
Are the rates lower on green buy-to-let mortgages?
Buy-to-let green mortgage rates can be just as competitive as those on residential deals, and similarly, are usually cheaper than their range of non-green buy-to-let deals. However, non-green buy-to-let deals could still be cheaper with other lenders, which is why it’s important to compare deals across the market.
However, keep in mind that buying energy efficient property, or upgrading your existing portfolio to achieve a greater EPC rating can be particularly beneficial to landlords.
While the proposed rise in energy efficiency standard requirements for rental property proposed by the last government was abandoned, there is a commitment within the current government’s manifesto to improve minimum energy efficiency standards in the sector in England, Wales and Northern Ireland by 2030. Scotland has committed to the same by 2028. It’s therefore a strong possibility that many landlords will need to make green improvements within the next 5 years in order to continue offering their portfolio to let.
Why choose Teito for your green mortgage?
On Teito, we’re able to provide tailored advice to those looking for green mortgage deals in both the residential and buy-to-let markets. Whether you’re looking to buy a green home, or take out additional green borrowing in order to improve your EPC rating, we can search the entire market quickly and effectively, based on your needs and circumstances.
Other green mortgage customers came to Teito because they loved:
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Our access to exclusive rates and deals
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Our bespoke advice
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Our reviews from other customers - were rated 5 stars on TrustPilot and Google
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Our free initial consultation
To take advantage of a free, no-obligation chat with a green mortgage deal expert, get started here.
FAQs
There are fewer green lenders available in Ireland, but the Bank of Ireland offers green deals at a similar rate to other UK mortgage lenders. The rates are based on Irish Building Energy Rating (BER) standards, rather than an EPC rating, with B3 or higher being the typical requirement to achieve these rates.
Allied Irish Bank also offers substantially lower green mortgage rates than their standard deals, with rates as low as 3% available to those buying the most energy efficient homes.
Choosing an Adviser
Selecting a qualified and experienced mortgage adviser is of great importance. To choose a suitable adviser, evaluate their qualifications, experience, and reputation, and ensure they are regulated by the Financial Conduct Authority (FCA).
Read reviews from previous clients and make sure they provide a clear explanation of the products and services they offer, as well as the fees and charges associated with them.