Green mortgages offer a lower interest rate than a standard mortgage, with the average saving reaching £1,200 in the first year according to 2026 lender data.
Homeowners are increasingly asking whether a green mortgage could reduce their monthly payments. A green mortgage is a standard home loan that offers a lower interest rate if your property meets certain energy efficiency criteria.
Green mortgages in the UK save an average of £1,200 in the first year, with rates 0.25% to 0.50% lower than standard products. Most lenders require an EPC rating of C or above to qualify.
- Average green mortgage saving is £1,200 in the first year.
- Typical rate discount is 0.25% to 0.50% lower than standard.
- Minimum EPC rating of C is needed for most lenders.
- EPC must be current (lodged within the last 10 years).
- Green mortgages are separate from government grant schemes.
- Green mortgages offer a lower interest rate than a standard mortgage, with the average saving reaching £1,200 in the first year according to 2026 lender data.
- The Energy Performance Certificate (EPC) rating is the primary eligibility gate for green mortgages.
- You do not need a green mortgage to get a government grant for home improvements.
- Quick numbers key figures for a typical green mortgage in 2026
- Your home’s EPC rating is the single factor that determines your green mortgage eligibility.
- You can verify a green mortgage offer by checking the lender’s terms for the EPC requirement.
- To qualify for a green mortgage, you must first have an up-to-date EPC certificate for your property.
The typical green mortgage rate is 0.25% to 0.50% lower than a standard equivalent product, according to Moneyfacts Group PLC (2026) (Moneyfacts Group PLC, 2026). For a £250,000 repayment mortgage over 25 years, the average first-year saving is £1,200. This figure is based on the rate differential data published by Moneyfacts and household energy efficiency statistics from the Department for Energy Security and Net Zero (DESNZ) (DESNZ, 2026).
The Energy Performance Certificate (EPC) rating is the primary eligibility gate for green mortgages.
An Energy Performance Certificate (EPC) rates a home from A (most efficient) to G (least efficient). Most lenders require a minimum EPC rating of C or above to qualify for a green mortgage product.
The EPC must be current, meaning it was registered within the last 10 years and lodged on the national EPC register. You can check your certificate on the GOV.UK Find an Energy Performance Certificate page (GOV.UK, 2026). Individual lender criteria are published on their websites and can vary, so you should check the specific requirements of the lender you are considering.
You do not need a green mortgage to get a government grant for home improvements.
Green mortgages and government grants are separate schemes. You do not need a green mortgage to apply for a government grant for home energy improvements.
The Great British Insulation Scheme closed on 31 March 2026. It funded insulation measures only and never covered windows or glazing. These are public grant programmes, not private financial products. The Great British Insulation Scheme closed on 31 March 2026. It funded insulation measures only and never covered windows or glazing.
Quick numbers key figures for a typical green mortgage in 2026
| Metric | Typical value | Source |
|---|---|---|
| Average rate saving | 0.35% | Moneyfacts Group PLC (2026) |
| Typical first-year saving | £1,200 | Moneyfacts Group PLC (2026); DESNZ (2026) |
| Minimum EPC rating required | C | Individual lender criteria (2026) |
| Maximum loan-to-value (LTV) for best rate | 75% | Individual lender criteria (2026) |
| Average product fee | £0–£999 | Moneyfacts Group PLC (2026) |
These figures are based on published data from Moneyfacts Group PLC (2026) and individual lender criteria. The actual rate saving and fee can vary between lenders and products.
Your home’s EPC rating is the single factor that determines your green mortgage eligibility.
Lenders check the EPC rating at application. A rating of A, B, or C is required for the discounted rate from most mainstream lenders.
If your home is rated D or below, you cannot access a green mortgage product from the majority of lenders. Moneyfacts Group PLC (2026) publishes a summary of green mortgage product criteria, which confirms this requirement across the market (Moneyfacts Group PLC, 2026). You can check your property’s current EPC rating on the GOV.UK EPC register (GOV.UK, 2026).
You can verify a green mortgage offer by checking the lender’s terms for the EPC requirement.
Always ask the lender for the specific EPC minimum rating and whether a new EPC is needed after improvements. Requirements can differ between lenders.
Some lenders require the EPC to be lodged within the last 12 months, while others accept any valid certificate up to 10 years old. Moneyfacts Group PLC (2026) provides product comparison data that includes these conditions (Moneyfacts Group PLC, 2026). Reading the individual lender’s terms and conditions is the only way to confirm the exact requirements for a specific product.
To qualify for a green mortgage, you must first have an up-to-date EPC certificate for your property.
The EPC must be lodged on the national register and be no older than 10 years. If your EPC is missing or expired, you must arrange a new assessment through an accredited domestic energy assessor.
You can find a local assessor through the GOV.UK Find an Energy Performance Certificate page (GOV.UK, 2026). The Energy Saving Trust (EST, 2026) provides guidance on EPC validity and the process for obtaining a new certificate (Energy Saving Trust, 2026). The cost of a new EPC assessment varies by property size and location.
how to improve your EPC rating for a green mortgage
Frequently Asked Questions
A green mortgage offers a lower interest rate if your home meets energy efficiency criteria, typically an EPC rating of C or above. Moneyfacts Group PLC reports the average saving is £1,200 in the first year (2026).
You can save around £1,200 in the first year on a £250,000 mortgage, based on a 0.25% to 0.50% rate discount. This figure comes from Moneyfacts Group PLC and DESNZ data for 2026.
Yes, most lenders require a minimum EPC rating of C or above to qualify. You can check your current certificate on the GOV.UK Find an Energy Performance Certificate page.
No, the EPC must be current (registered within the last 10 years). If yours is older, you will need a new assessment before applying.
No, you do not. Government grants like the Boiler Upgrade Scheme and ECO4 are available to all homeowners regardless of their mortgage type, according to GOV.UK (2026).
