Mortgage Brokers ListGreen and eco mortgages
Some UK lenders offer a discount on the mortgage rate for properties with high Energy Performance Certificate ratings. The difference is modest but worth understanding before you buy or renovate.
Last checked 13 September 2026. Editor: Kris · editorial standards
Five sections. Each anchored to a first-party source, checked 13 September 2026.
1. What a green mortgage is
A green mortgage is a product that offers a lower interest rate, cashback, or a higher loan-to-value for properties that meet a minimum energy efficiency standard, usually defined by an Energy Performance Certificate (EPC) rating of A or B. The discount compared with the lender's standard equivalent product varies by lender but is typically 0.1–0.2 percentage points. A small number of lenders also offer a higher income multiple or a reduced arrangement fee on green products.
2. Energy Performance Certificates
An EPC rates a property from A (most efficient) to G (least efficient). An EPC is required whenever a property is sold, let, or newly built. You can search existing EPC certificates for any property in England and Wales at no cost on the GOV.UK EPC register. EPCs are valid for ten years, so an older certificate may not reflect recent improvements. Commissioning a new EPC costs £60–£120 and takes a few hours to arrange.
3. Is it worth upgrading for the rate?
The maths depends on your loan size and the size of the rate discount. On a £250,000 mortgage, a 0.1 percentage point rate reduction saves roughly £250 per year in interest. Upgrading from EPC D to B through insulation and heating improvements typically costs £5,000–£15,000. At £250 per year, the payback period is 20–60 years on the rate saving alone; most buyers find the energy bill reduction and improved comfort are better arguments for the works. The rate discount is a bonus, not the primary case for upgrading.
4. Green mortgages for new builds
New builds built to current standards typically qualify automatically for a green product without requiring any additional work. If you are buying a new build, ask your broker whether the lender's green rate is available and whether there is any restriction on developer incentives applying at the same time — some lenders reduce the green benefit if cashback incentives are accepted. See the new build mortgages guide for the other rules that apply.
5. What to ask a broker
Ask whether the property's EPC rating qualifies for a green product with any of their lenders, and compare the green product's total cost (rate, fees, cashback) against the best non-green equivalent. At the first meeting the broker must confirm the range of lenders it accesses and any fee it charges (MCOB 4.4A.1R and 4.4A.8R).
More guides
- How to choose a mortgage broker
- Mortgage declined
- Cifas markers and mortgages
- Mortgages with bad credit
- Mortgages for the self-employed
- First-time buyer mortgages
- Buy-to-let mortgages
- Remortgage guide
- Contractor mortgages
- Agreement in Principle
- Credit score and mortgages
- Mortgage broker fees
- Divorce and mortgages
- Gifted deposit
- Should you use the estate agent's recommended broker?
- Documents for a mortgage application
- What happens at a mortgage fact-find
- Joint mortgages
- Later life and equity release mortgages
- NHS staff mortgages
- Buying at auction: bridging and mortgage options
- Expat mortgages
- New build mortgages
- Shared ownership mortgages
- Second charge mortgages
- Holiday let mortgages
- Help to Buy: what existing borrowers need to know
- Offset mortgages
General information, not advice. Mortgage Brokers List is a directory and a set of free tools. Only an FCA-authorised adviser can recommend a mortgage for your circumstances. See our editorial standards.