In June 2019, the UK government passed legislation that committed the nation to achieving net zero carbon emissions by 2050. This catapulted many new green initiatives into the spotlight, including green finance. A key part of the UK’s Net Zero Strategy, green finance will be instrumental in helping customers and businesses transition to green technology and clean energy over the next 30 years.
What is Green Finance?
In a nutshell, green finance is funding for eco-friendly activities. This could be a business loan specifically for making a company’s operations more environmentally friendly, or a personal loan to help you make your home that bit greener.
Why is green finance so important?
Green finance makes it possible for businesses and individuals to become more eco-friendly. In many cases, making day-to-day practices and infrastructure more sustainable takes a fair amount of investment. However, if lenders are willing to support these investments, it will be easier to transition to a low carbon society.
What green finance products are available?
When you check your loan, credit card or car finance options with us, we only use a soFor businesses, there are currently an array of green loans on the market which you can use to make your business more sustainable. These allow you to invest in green initiatives such as clean buildings, energy or transport. With a green loan, you’ll usually need to provide the lender with proof that you’ve used your loan for green purposes.
For individuals, there are green mortgages available that reward you for purchasing an energy efficient home. This means you could get a reduced rate on a two or five year fixed-rate mortgage, or cashback at a later stage. To be eligible, you’ll usually have to have a valid Energy Performance Certificate (EPC) with a rating of A or B. If you’d like to find out if you’re eligible for a green mortgage, our team at Freedom Mortgages will be able to run you through your options.
Making your home more eco-friendly
Although here at Freedom Finance we don’t currently offer green loans, we can help you finance your own green home improvement projects with personal or secured home improvement loans.
Investing in eco-friendly home improvements such as home insulation, solar panels or installing electric car charging points can save you money in fuel and energy down the line. They could also increase the value of your home, giving even more of a return on your investments.
Still have questions?
Does Freedom Finance offer any green finance products?
Yes, Freedom Mortgages can help you check if a green mortgage is an option for you. If you’re looking to remortgage or buy your next home, get in touch with them today.
Here at Freedom Finance, we don’t currently offer any green loans. This is something we’re looking to add in the future – so watch this space!
What is an Energy Performance Certificate (EPC)?
An Energy Performance Certificate (EPC) contains information about a property’s energy use and how much it usually costs to run. It may also contain recommendations about how to reduce the property’s energy usage and save money.
The certificate will give your property a rating from A to G, with A being very efficient and G being inefficient. You need an EPC within seven days of your property being put on the market for sale or rent.
If you’re planning on buying a home rated A or B on it’s EPC, you may be able to get a reduced rate with a green mortgage.
How can I make my home eco-friendly?
There are a whole range of ways that you can make your home eco-friendly. These include infrastructure changes such as insulation, double-glazing and solar panels or upgrading your appliances to more eco-efficient models.
For more information about making your home more energy efficient, visit the Energy Saving Trust.
Can I get any help from the government?
Yes, the government’s Green Deal helps you find the best way to pay for your energy saving home improvements. Find out more about the government Green Deal.
You can also check if you’re eligible for grants to make your home more energy efficient.
In the 2022 Spring Statement, VAT was removed on energy saving materials for homeowners. This means it is now cheaper to make your home more energy efficient.
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