Eco-mortgages already available

Wednesday, 30, Jul 2008 04:12

The Ecology Building Society (EBS) has moved to remind consumers eco-mortgages are already available to environmentally concerned consumers.

The announcement comes in response to a report published yesterday by British Gas and the Institute for Public Policy Research (IPPR) which called for "the creation of new green mortgage packages by banks and energy companies to pay for the installation of energy saving technology".

However, such deals have been on the market since 1981, claims the EBS.

The most recent incarnation of the product is the C-Change Home Improvements mortgage, which allows homeowners to remortgage to the society and receive a one per cent reduction in the mortgage rate for any money spent on energy-efficient or sustainable work they do on their home.

With a rate of 6.45 per cent, this discount, coupled with the savings in home energy costs, means customers may be better off going green, argues the EBS.

"We welcome the green streets initiative and its practical demonstration of what can be achieved," said Ecology chief executive, Paul Ellis.

"Our C-Change mortgage borrowers are already greening their streets and making a direct contribution to reducing carbon emissions, while benefiting from long-term discounts which don't rely on switching every couple of years.

"Ecology mortgages are truly green unlike carbon offset deals which are akin to closing the stable door after the carbon horse has bolted," he added.

When the whole cost of the home is taken into account, including energy costs, the C Change Home Improvement mortgage can make financial sense argues the EBS.

Consumer watchdog energywatch says the average domestic fuel bill is around £1,053 a year and most commentators think that average fuel inflation is going to be in excess of ten per cent a year going forward.

Chris O'Toole