EEM - The Energy Efficient Mortgage

An increased mortgage scheme from the 1980s has seen a resurgence in popularity in America, as future homeowner attempt to make their properties more compatible with green energy solutions. The EEM stands for an Energy Efficient Mortgage, and features a larger loan which buyers can use to convert to energy-efficient power sources across the entire property. This could include solar panels, LED light bulbs, double glazing and insulation.

Research has showed that residential energy consumption in the USA has declined year-on-year since the 1990s, which is a remarkable statistic when taking into consideration the amount of technology which has been implemented into homes in this time. The decrease has been put down to increased awareness of energy issues, and also on the emphasis placed on schemes such as replacing incandescent light solutions with their energy-saving light bulb counterparts. The EEM mortgages help to fund these types of upgrades for all houses and will surely contribute to an even lower rate of consumption in the homes of those who take out such mortgages.

The loans amount to no more than 5% of the original property value, but a home which is fully equipped with the latest energy-saving lighting solutions, insulation equipment and energy-efficient technology can end up being sold for much more than it was originally purchased for. ‘Green’ homes are more attractive to buyers nowadays and the installation of such features can add thousands to asking prices. These environmentally-friendly additions to the home will also help the homeowner to save money whilst they are residents there; their energy costs will decline by an incredible amount, with savings on heating and electricity almost guaranteed for a home which has been renovated to ensure efficiency. Also, though the loan is significantly larger than the original price of the mortgage and the property, the extra amount granted to buyers does not increase their down payment and it has no effect on their interest rate. It is simply added to the existing loan, and the terms of the original mortgage apply.

The Energy Efficient Mortgage has not taken off in the UK to the extent that it has in the USA as of yet, but with many lenders and banks introducing green incentives and assistance to their customers wishing to go ‘green’, the advantages of converting to sustainable and energy-saving power sources and accessories are plentiful. Not only are savings almost guaranteed from the minimised use of power from energy companies, who charge over the odds for their services, homeowner are contributing to the future by providing ecologically sound homes for their children and grandchildren.

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