Green Remortgages

A green mortgage is a mortgage product where the lender links accessibility of the deal to the energy efficiency of the property. For remortgage customers, the “green” element is assessed against your current Energy Performance Certificate (EPC) position.

This guide explains what green mortgages are, how EPC ratings are used, what improvements you may consider, and what to think about when your remortgage has a timeline.

What is a green mortgage?

Green mortgages are not a separate mortgage category in the way that buy-to-let is. Instead, they are typically standard mortgages with additional energy-efficiency conditions.

Depending on the lender and product design, the “green” element may involve:

Pricing incentives tied to the property’s EPC rating (where offered)
Cashback or rewards linked to completing qualifying energy upgrades (where offered)
Additional borrowing to fund specific improvements (where the lender allows this)

It’s also worth noting that a “green” mortgage label is usually about property energy performance outcomes, rather than the lender's broader ethical or investment policies.

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Two green remortgage routes

1) Green purchase or remortgage products

These are aimed at properties that already meet a high energy-efficiency standard.

In many cases, the property needs an EPC rating in the higher bands (often A or B) to qualify for the green incentive. If the property’s EPC is lower, the lender may still consider it, but the green benefit may not apply.

2) Green additional borrowing for improvements

Some lenders also offer a route for existing homeowners to fund energy upgrades.

This is typically structured as additional borrowing (or a separate improvement element) where the funds must be used for approved measures—such as:

insulation upgrades (loft, cavity wall, solid wall where applicable)
low-carbon heating systems (for example, heat pumps)
solar panels
other qualifying energy-efficiency improvements

Because the money is earmarked for specific works, lenders usually expect evidence that the improvements are carried out as required.

Green remortgage deals by loan-to-value

If your home is energy efficient, some lenders reward it: green mortgages can offer lower rates or cashback when your property's EPC rating is in the top bands — most lenders look for A or B, and a few use a numerical score instead. Because each lender sets its own green criteria, it's worth checking which deals your EPC unlocks before you switch.

These mortgages (and others) are only avaliable to green properties:

Why lenders offer green mortgage incentives

In general, lenders may view energy-efficient homes as:

lower running-cost risk: lower bills can make it easier for borrowers to manage monthly outgoings
more resilient assets: as energy standards tighten, efficient homes may face less pressure than inefficient ones
better aligned with future demand: buyers increasingly look for homes that are cheaper to run and more comfortable

As a result, some lenders may offer improved terms. The Government also incentivises them to offer them through schemes or more complex tools like "Risk-Weighted Assets".

Our Green Mortgage Lenders

Not all mortgage lenders offer Green Mortgages but these are our partners that do. We compare their criteria, deposit requirements and available products to find options that fit your circumstances.

3+ lenders

How lenders assess green mortgages: EPC ratings

Many green mortgage decisions are built around the property’s EPC rating.

EPC basics

An EPC (Energy Performance Certificate) shows energy efficiency on a scale from A to G:

A = most efficient
G = least efficient

EPCs are typically valid for 10 years and are produced by an accredited domestic energy assessor.

What EPC rating do lenders look for?

There is no single universal EPC threshold across all green mortgage products. Different lenders may:

Focus on higher EPC bands for their green pricing
Use a numerical EPC score approach rather than only the letter band
Treat certain property types or circumstances differently

Because the rules vary, two properties with the same EPC rating can still experience different outcomes depending on the lender’s specific green criteria.

EPC rating thresholds

While each lender sets its own criteria, green mortgage eligibility commonly requires the property to be in a high EPC band (for example, A or B) or to meet a minimum EPC score (for example, around 80+).

Because criteria vary, you should treat any EPC thresholds as indicative until you’ve checked the specific product requirements.

What counts as an “energy-efficient” property for green remortgages?

Green mortgage criteria are usually tied to the EPC outcome, but the EPC is influenced by factors such as:

insulation levels (e.g., loft and cavity wall insulation)
heating system efficiency
windows and doors (including glazing type)
ventilation and overall energy use
use of renewable or low-carbon technologies (where applicable)

In practice, two homes with similar layouts can have different EPC results depending on the specification and condition of the energy-related features.

Are there other eligibility requirements beyond EPC?

Yes. Even if your property meets the EPC requirement, green mortgages still follow normal mortgage underwriting. That means eligibility is not based on energy efficiency alone.

Depending on the lender and product, additional factors can include:

the type and value of the property
the loan-to-value (LTV) you’re seeking
your income and affordability assessment
your credit profile and mortgage conduct history
the remortgage structure (e.g., repayment vs interest-only, term length)

Because green mortgages are offered by a smaller number of lenders, the available options may be narrower than with standard remortgage deals.

How green mortgages work for remortgage customers

When you remortgage, you’re not buying a new home—you’re refinancing the mortgage on a property you already own. As a result, lenders typically focus on the energy performance of your existing property.

In practice, remortgage borrowers often fall into one of two scenarios:

Your property already meets the lender’s green criteria based on the current EPC
Your property is below the lender’s green criteria, but the remortgage includes funding for qualifying improvements (where the product allows this)

Fixed-rate remortgages and timing of improvements

Many homeowners remortgage from a fixed-rate deal. If you’re considering energy upgrades as part of moving onto a green mortgage, timing can be important.

You will need the works completed and have a new valid EPC Certificate ready to provide the mortgage lender.

However, managing the costs and benefits won't offset the cost of energy-efficient upgrades only play a part in a bigger picture, such as energy savings.

If your EPC is close to the threshold

If your EPC is near a lender’s minimum (for example, just below a high EPC band requirement or a minimum score), the next step is often to understand what changes could raise the rating.

Energy-efficiency improvements that can influence EPC outcomes may include upgrades to insulation, more efficient heating, improved glazing, and other measures that reduce energy demand. If improvements have already been made, ensuring the EPC is updated can be important.

Green mortgages and buy-to-let (context)

Some green mortgage products are also available for buy-to-let properties. While the underlying concept is similar—energy efficiency is central—buy-to-let decisions can be influenced by additional factors such as how the property is expected to perform in the rental market.

For landlords, EPC compliance and energy upgrades can affect:

Whether a property can be refinanced on certain terms
Whether the lender is willing to support upgrades as part of the refinancing plan
The documentation required to evidence improvements

Are green mortgages always cheaper?

Not necessarily.

They can (& are often) the cheaper product in a specific lender's range, but other lenders may be more competitive overall.

Green mortgages vs standard mortgages: it’s not only about the headline rate

A green mortgage may offer a lower rate or cashback, but it’s still important to compare the total cost.

When assessing whether a green option is worthwhile, consider:

product fees (and whether they differ from standard deals)
the interest rate and how it changes over the term
any conditions attached to the green incentive
whether the green option is available at your target loan-to-value (LTV)

A green mortgage can be an attractive option, but it’s not automatically the cheapest mortgage in every situation.

Common misconceptions about green mortgages

“Eco mortgage” means the mortgage is automatically cheaper. Not always. Incentives vary by lender and by the property criteria.
“Green” is only about the interest rate. Some deals reward eligibility, cashback, or lender-level sustainability rather than pricing alone.

Frequently asked questions

Not necessarily. While new-build homes often have stronger baseline energy performance, eco mortgage criteria can also apply to existing properties.

For older homes, the route to an eco mortgage may involve:

Choosing a property that already meets the required EPC performance, or
Planning energy-efficiency improvements that are expected to raise the EPC rating.

If you’re considering renovations alongside a purchase, it’s worth thinking early about how the works will be evidenced and whether the lender’s requirements align with your timeline.

If a green remortgage product allows energy upgrades to be funded, lenders usually specify what they will accept and how the works must be evidenced.

Common examples of upgrades that may be considered include:

Loft and cavity wall insulation
Upgrading windows to more energy-efficient options
Replacing older heating systems with more efficient alternatives
Installing solar panels

The key point is that the works must align with the lender’s requirements and be capable of supporting the EPC improvement the green product depends on.

Where a green mortgage is linked to improvements, lenders typically expect documentation that shows:

Quotes for the works
Invoices and/or proof of completion
An updated EPC after works are completed (where required)

The exact evidence requirements vary by lender and product design, so it’s important to plan for what will be needed and when.

There isn’t a single UK-wide rule that green homes always sell faster. That said, energy efficiency is increasingly important to buyers and tenants, and stronger EPC ratings can improve how a property is positioned as expectations evolve.

For remortgage planning, the more immediate focus is usually how the lender’s green requirements may affect your refinancing options now and in the future.

Key questions to consider before choosing a green mortgage

When evaluating green mortgage options, it helps to clarify the following:

What is the property’s EPC rating right now?
Does the lender require a specific EPC band for the green incentive?
Is the green benefit tied to purchase/remortgage, or to improvements?
If improvements are involved, what measures are accepted and what evidence is required?
How do fees and overall costs compare with a standard mortgage deal?

If you’re considering a green remortgage, a useful starting point is understanding your current EPC position and whether any required improvements can be delivered and evidenced within your remortgage timeline.