Personal finance

Are personal finance transactions as green as they claim

Banks and building societies have also launched more green products in recent years, especially in the mortgage market. Currently, there are hundreds of mortgages that have a green mark by the lender, but there is no regulatory guidance on what qualifies as a green mortgage.

Many green brand mortgages require the property to have an EPC rating of A or B, which means that some homeowners, especially those who buy new construction which tend to be more energy efficient than older properties, will subconsciously be eligible for a green mortgage agreement.

Other mortgages that are often green branded are those that are specifically available to those looking to use the mortgage to renovate or renovate a property to make it more energy efficient. Currently, only seven of these agreements are available, from lenders Progressive Building Society, Saffron Building Society, Hanley Economic Building Society and Ecology Building Society.

Within the savings market, only seven lenders offer green products, but again, without any official clarification on what qualifies as a green savings deal, their environmental credentials vary. Tandem Bank, for example, says that by opening its Green Instant Access Saver, savers are supporting the bank’s green lending initiatives and helping to make UK homes more sustainable and environmentally friendly. Meanwhile, with a Saffron Building Society Enviro Saver account, every 12 months an amount equal to 0.10% AER of the average balance is donated to an environmental charity.

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