To help potential homeowners better understand the new Zero Energy Bill scheme, Pete Mugleston, MD and mortgage expert at Online Mortgage Advisor has shared his insights and what to look out for.
How does this mortgage work?
When homeowners opt for this new mortgage, their new property will be fitted with the latest renewable energy technology. This includes solar PV systems capable of generating sufficient electricity to meet household demands and heat pumps that utilise natural resources for heating and cooling.
The energy produced on-site is not only sufficient for daily consumption but is also designed to cover potential increases in energy needs, ensuring that the household remains self-sufficient. Any excess energy generated can be fed back into the grid, with homeowners potentially profiting from this excess energy.
The initial costs of installing the hardware are integrated into the mortgage, spreading the investment over the mortgage term.
Benefits of green energy mortgages
The primary advantage for homeowners is the significant savings they will get from having no more energy bills. Given the recent volatility of energy prices and the rising costs associated with traditional energy sources, this stability is a welcome relief for many prospective homeowners.
This unique mortgage marks a substantial leap towards reducing the carbon footprints of housing. By harnessing renewable energy sources, ‘Zero Energy Bills’ homes contribute to the UK’s broader goals of reducing greenhouse gas emissions and promoting a more sustainable future.
What impact will this have on the housing market?
As more consumers become aware of the benefits of energy-efficient homes, the demand for such properties is expected to rise. This increased demand could drive further innovations in sustainable housing and encourage more developers to incorporate green technologies into their projects.
This initiative represents a shift in the mortgage industry towards more responsible lending practices that consider the financial well-being of borrowers and their environmental impact.
By promoting mortgages that encourage sustainable living, lenders like Perenna are setting new standards for the industry and demonstrating that financial products can be designed with both economic and environmental sustainability in mind.
