The coldest months of the year are here, and with 60% of the UK’s housing stock below par when it comes to energy performance, many will know the frustrations of a leaky home. Not only does this mean higher energy bills, it also results in more carbon emissions being generated.
Fortunately, there are solutions to help, although these aren’t one-size-fits-all. Karina Gerdes, Head of Resilient Homes at Mortgage Advice Bureau, outlines what homeowners need to consider before embarking on a bid to boost their energy performance.
Considering the cost
Let’s start with the elephant in the room. Retrofitting can be expensive – there’s no two ways about that. However, there are now more solutions to finance these upgrades. Installing improvements such as solar panels, insulation, advanced glazing, or heat pumps can also lead to cost savings in the long run. In the immediate future, there are smaller, more cost-effective measures that can be undertaken, such as draught proofing, carpet underlay, and switching to LED lighting.
The importance of expert advice
Speaking with an adviser could help to point you in the right direction where you can learn more in terms of knowing where to start, as well as which upgrades will make the biggest impact. An end-to-end service can help, taking you from the initial survey all the way through to the completion of the works and a new EPC certification, whilst helping you to find the most suitable finance solution.
Increase your property’s value
By improving your EPC rating not only could your property become more valuable, it could also be more attractive to buyers should you sell due to comparatively lower utility bills and potential increase of comfort. In fact, our research found that 61% of future buyers would be more inclined to make an offer on a home with a better EPC.
Impact on mortgages
Apart from the obvious cost savings on energy bills, improving your property’s EPC rating could also reduce the ongoing cost of your mortgage. There are two types of green mortgages to consider, each offering distinct benefits.
Some green mortgages are designed to help fund retrofitting projects, offering incentives such as cashbacks, lower interest rates, or the ability to borrow more to cover the cost of energy efficiency improvements. These options can make it very cost effective to upgrade your property and improve its EPC rating.
Once your property’s energy efficiency has been improved, you may also become eligible for green mortgages that reward energy-efficient homes. These are typically available to those with high EPC ratings (A or B) and offer ongoing benefits, such as reduced rates or other financial incentives, depending on the lender. Speaking with an adviser can help you understand your options and identify potential savings tailored to your situation.
This is by the Mortgage Advice Bureau
