We tell you everything you need to know about green mortgages in Málaga. What are they? How do they work? Which homes can get a green mortgage? And much more.
We want to talk about green mortgages and how they're revolutionising the mortgage market. As well as being an innovative product with many benefits, they help protect the environment and promote sustainable homes.
It seems these mortgages are all advantages. However, not everyone can apply, as it depends on several requirements, both for the client and for the home on which the loan is requested.
Below we look at the main features and advantages of green mortgages, as well as the requirements a house must meet to get an "eco" mortgage, as these mortgages are also known.
What is a green mortgage?
Green mortgages are loans to finance the purchase, construction or restoration of energy-efficient homes. So they can finance the purchase of properties with an A or B energy rating, building efficient houses or restoring older homes to make them more energy-efficient.
Since, in general, lenders offer better financial terms for these mortgages than for conventional loans, you could say green mortgages were created to promote and encourage environmentally friendly homes.
Benefits of taking out a green mortgage
An efficient property uses less energy, which means an annual saving on your household bills that could average up to 4,000 euros.
Demand for energy-efficient homes has soared in recent months. In fact, since the start of the pandemic, searches for these properties have risen by 30%, according to a study by Spain's General Council of Official Colleges of Property Agents which, as well as saving money, help build a more sustainable society that respects the planet.
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What kind of home qualifies for a green mortgage in Málaga?
Any company or individual can apply for a green mortgage, but it will only be granted to finance the purchase, construction or restoration of a sustainable home.
As with any other mortgage on the market, anyone wanting an "eco" mortgage must prove they have sufficient solvency to meet the monthly payments.
The home's requirements for a green mortgage are simple. The main requirement is that the money from the lender is invested in a property that can be classed as "sustainable", in one of two situations:
- Building or buying a sustainable home: That is, using the loan to buy a home with an A or B energy certificate.
- Renovating a house to improve its energy efficiency: That is, using the money lent by the bank to renovate a home in a way that improves its energy rating.
If the property has an A or B rating, it can qualify for a green mortgage. Otherwise, you'll need to show that enough changes and renovations can be made to improve its energy rating.
To find out whether this is possible, the same professional who visits the property to determine its energy rating will carry out specific checks, such as analysing the home's thermal and acoustic insulation, the type of installations, how much it consumes and pollutes, and the property's general condition. This way they'll know whether the necessary changes will achieve the desired energy efficiency improvement. If so, it will be possible to get a green mortgage to finance these renovations.
Note that since 2013, all properties for sale or rent must have an energy efficiency certificate. Owners without one can face fines of up to 6,000 euros.
As we said, as well as the energy efficiency certificate, to apply for an "eco" mortgage you'll need the same documents as for any other traditional mortgage, so the bank or lender can assess your financial solvency.
The existence of green mortgages shows that both banks and consumers are increasingly aware of the importance of looking after the environment and the planet. After all, it concerns us all.
If you'd like to know about or get advice on other types of mortgage, let us know through the form below or on our Mortgages page.
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