'Variety of approaches to green mortgages'

Lenders are increasingly offering customers green mortgages but it seems that as yet there is no clear definition of what they include.

Mortgage providers appear to have a variety of ways in which they approach environmentally-friendly loans with the Co-operative Bank recommending borrowers shop around for the right offer for them.

Currently it is up to individual lenders whether they offer a 'green' product and it seems the definition of "green" varies considerably.

Some lenders will offer a discount on their standard variable rate if your home is energy efficient or if you are borrowing to invest in energy efficiency improvements.

Others will offset the carbon footprint of the mortgage by planting trees or making a donation to the Carbon Trust.

A spokeswoman for the Co-op Bank said: "As there is no consistent definition of what constitutes a green mortgage, there is currently a whole range of different approaches.

"At the Co-operative Bank, for every mortgage on our books we make a payment to Climate Care, an organisation dedicated to helping combat global warming by countering the emissions of carbon dioxide (CO2), a by-product of energy consumption."

Related Articles