Homebuyers in Wales will soon be able to receive larger mortgages if they are purchasing an energy efficient house, according to The Guardian. The policy, applicable to Welsh government-backed loans, aims to encourage more people to invest in green buildings by making them eligible for an additional $15,600 on their mortgages.
The program, which will start in June, is for Help-to-Buy loans up to $408,000. The extra money is being made available with the understanding that homebuyers will have lower electricity and gas bills in homes with higher energy ratings.
“We hope to see lenders follow our lead and make energy efficiency part of the mortgage consideration for all homebuyers in Wales,” Rebecca Evans, Wales’s housing minister, said in a statement.
The Welsh policy follows a recent announcement by Barclays, a British multinational bank, that it will begin offering discounted interest rates for highly efficient homes. Other green building policies that have gained backing in the UK in recent years include offering council tax discounts and lowering the stamp duty – a lump-sum tax paid when purchasing a property – for energy efficient homes.