It seems that global responsibility and awareness of the state of the environment has reached the mortgage market, with a new type of mortgage being launched this week. The green loan offering from Giraffe comprises a range of carbon offset mortgages. These will be available for mainstream, buy-to-let and self-certified customers.
The mortgages work by offsetting the equivalent of 5.5 tonnes of carbon for each year of the promotional period, currently set at three years. This figure is the estimated amount of carbon emissions that an average household produces per year.
Giraffe, which is part of the Bank of Ireland, offers mortgages including a fixed deal at 5.59%. There is, however a £999 arrangement fee on this one! Giraffe offers a buy-to-let rate of 5.94% and a self-certification deal which is available at 6.09%. All mortgage offers will be fixed for three years.
Green home loans are definitely becoming more popular, or at least, more available as banks and building societies recognise the value of saving the environment, but the negative aspect to them is that they generally fail to match up to standard deals and are generally found to be much more expensive. It seems that the market is quite upbeat about the Giraffe, which has chosen a modestly competitive rate for the launch of its carbon offset mortgage. There are cheaper rates available than the fixed three year 5.59% deal but these are not widespread and the Giraffe carbon offset offering isn’t a bad deal at all, particularly considering that the Giraffe has a normal three-year fix at 5.48%.
Whether or not this mortgage will appeal is a matter for speculation. Although it is a noble and worthy cause, as any that may help improve the environment in which we live, the question is whether borrowers are prepared to pay more on their biggest outgoing, particularly given the recent increase in rates.
Tags: banks, loan, loans, mortgage, iva <BR/>
Related posts:
Leave a Reply