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Green mortgages for first-time buyers

Journalist: Tom Dunstan, FTAdviser

ended 09. July 2024

Recently, it as been argued that, with energy efficiency and sustainability fast becoming an essential factor when buying a new property, green mortgages are a “great way for buyers to be rewarded when purchasing an efficient home”.

This follows a recent case study of couple Georgia and Molly who recently purchased their first home in Sussex, putting down a 10% deposit of £41,500 .


“We started off on a high interest mortgage rate of 5.15% but after finding out we could change our rate up until the day we move in, we secured a much lower rate of 4.55%. Applying for a green mortgage definitely benefitted us financially, with a better overall rate, and with our reduction in energy bills, a new home was the best way forward for us,” Georgia said.

Alex Dowling, Head of Sales and Marketing at David Wilson Southern Counties, said: “Applying for a green mortgage hugely supports those making their first move by offering financial incentives to help keep costs down."

What is your opinion on this? Does Georgia and Molly's situation sound representative of other first time buyers? How useful are green mortgages for first time buyers in your opinion and experience?

1 responses from the Newspage community

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Dariusz Karpowicz
Director at Albion Financial Advice
Talk about sustainability is fashionable, but these green mortgage incentives often feel like more of a marketing gimmick than a driving factor for buyers.

In Georgia and Molly's case, it's great they secured a better rate and will save on energy bills, but for most first-time buyers, meeting the criteria for a green mortgage is a bonus rather than a primary motivation. These incentives can help keep costs down, which is always a plus, but they aren't usually the deciding factor in purchasing a home.

From my experience, while green mortgages can be beneficial, they aren't the main attraction for first-time buyers. People generally prioritize location, price, and size over energy efficiency, and if they meet the criteria for a green mortgage, it's just an added benefit.