Want To Make Your Home Greener? Then Learn How a Remortgage Can Help You Acheive Your Green Goals
Remortgaging has become more popular in recent years for various reasons. Some homeowners want to reduce their monthly mortgage repayments by opting for lower rates, while others look to borrow additional money to repay their high levels of debt such as credit cards.
But now there is a new reason why people look to remortgage – to make their homes greener to help the environment. Over the next nine years, the government in Britain are looking to have at least 15% of energy in England coming from renewable sources and many people who own their own homes are also looking to help by switching from oil and gas to greener energy.
Recent research has revealed that just over 5% of the electricity in the UK comes from environmentally friendly energy sources, and the government have said that this needs to increase by nearly 1/3 to meet the targets to reduce the effects of climate change and have promised to help homeowners who want to generate their own energy.
Anyone who looks into the costs of converting their power sources will see that the costs are quite high, and therefore some people have been looking to remortgages in order to help pay for them. This is a great way to borrow the money to do the work.
To save money on your energy bills, you could consider installing solar panels, wind turbines or hydro-electricity systems, however these can cost thousands of pounds which many don’t have lying around. But if you have equity in your property then you may be able to get a remortgage in order to raise money to pay for it.
Remortgages involve changing your current mortgage to a new one and by doing this the lender may allow you to borrow extra money against your property price in order to fund a conversion of the power in your home so that you can be a little greener.
Your existing or new mortgage lender will assess your finances to ensure that you can afford the additional advance and you can, in today’s climate, increase your loan to around an 80% loan to value.
A benefit of installing an environmentally friendly energy system into your home is that the government will also offer a grant for generating your own energy sources, which will also help towards the cost of the project.
The scheme that the government have put in place is an attempt to encourage greener domestic living by partially funding the installation of renewable power systems, which should help to increase the amount of green energy in use and cut the use of energy that harms the environment.
So if you do want to save money on your household bills and look after the earth at the same time, installing renewable energy systems may be for you. And as you can obtain funding from the government and by way of remortgaging there should be no reason not to be involved.
Timothy Frodsham writes for Just Commercial Mortgages.com the UK’s No.1 site for the latest commercial mortgage rates and commercial property finance news.