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.
Ethical mortgages could lend on buildings where:
- 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.
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.