Ethical Mortgage?


How can I find an ethical mortgage?

The market for ethical and green mortgages is relatively small, partly because consumers have been more concerned about what they invest in than who they invest from, and also because the building societies have traditionally had housing only related investments. However many building societies have now de-mutualised and become much more like banks in their lending policies. Different types of ethical mortgage include:

* The Co-operative Bank has linked all their mortgages to a reforestation scheme, designed to offset 20% of an average home's CO2 emissions.

* The Norwich and Peterborough Building Society offers their 'Green' mortgage for energy efficient homes, this mortgage is linked to a reforestation scheme aimed at making the homes Carbon Neutral, and their 'Brown' mortgage for people who wish buy a property to restore or convert rather than using a greenfield plot.

* The Ecology Building Society offers mortgages for energy efficient housing, ecological renovation, derelict and dilapidated properties and small-scale and ecological enterprise.
* Several of the SRI fund providers also provide house purchase endowment products through the SRI funds.

* Mortgages are, of course, available from high street banks and some of these are working to be more responsible, see How ethical is your bank?

* People often invest in ISAs and other types of investment products as a way of saving to pay off their interest only mortgage before they retire.

Economie always recommend that you consult an authorised financial adviser on the best type of mortgage to suit your needs. For further information visit www.eiris.orgg to download EIRIS' 'Guide to Ethical Mortgages and Insurance' (2002).





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