What are ethical mortgages?
Ethical mortgages are not very common in the Uk.
The only ethical mortgage lender which is known in the UK is Ecology building society
Ethical mortgages will be mortgages where the funds are lent or derived from an ethical source.
An ethical mortgage lender could generate funds from running an ethical business committed to sustainability and the growth of our environment and planet.
This could simply be reinvesting funds into sustainable projects. Most mortgage lenders promise to do this but few actually do.
An ethical mortgage lender may also only lend on buildings where there is a plan for sustainability.
This could be:
The use of solar panels
A refurbishment where sustainably sourced materials are to be used
An eco home
A commercial property whose business is about sustainability
Lending on homes based on their energy efficiency
Getting a mortgage can be a very difficult process if not handled with care.
If you are considering getting an ethical mortgage then using a mortgage broker may be a good choice as mortgage brokers usually have access to many more products than any specific mortgage lender.
Mortgage brokers will also usually have access to specific deals from mortgage lenders as well as experience on which mortgage lenders will be more likely to accept your case and provide you with a mortgage offer. This will help you avoid getting rejected on a mortgage application and having to build credit due to the damage a rejection might do to your credit score.
If you have bad credit or are self-employed then specialist mortgage brokers such as bad credit mortgage brokers or self-employed mortgage brokers may be useful.