Eco-friendly borrowing with a conscience

A derelict church or a new timber chalet might sound attractive to an adventurous homeowner but mortgage lenders have traditionally steered away from unconventional properties.

However, as green issues increasingly play on people’s consciences, the desire to restore defunct buildings or build eco-friendly properties is growing.

Only a handful of specialised lenders are marketing “green” mortgages. These can either be loans that offer environmentally-friendly perks such as free energy savings reports, carbon offsetting and cashback for energy-saving home improvements or those that fund large-scale renovations of disused buildings and energy-efficient new builds.

One lender, is happy to offer loans on properties that other lenders might consider “unmortgageable”. It funds the building of log cabins, timber chalets and properties constructed using traditional materials such as straw. It also offers loans to develop rundown houses or derelict buildings.

The company has provided mortgages on a wide range of properties from dilapidated cottages to disused lighthouses, chapels, coast houses, water towers and barns. These are the kinds of properties that standard banks and building societies might not be too sure about.

A growing number of lenders are offering “green” mortgages for more conventional properties and are expected to introduce these sorts of green mortgages as they seek to capitalise on growing concerns over climate change.

Your home may be repossessed if you do not keep up repayments on your mortgage.
Article date: 12.06