Mortgages
Choosing a mortgage can be a complicated decision – Tracker, Flexible, Fixed Rate etc. – even more so in the current unsettled property market. These days there’s another choice to make – the one based on the ethical stance of your mortgage lender.
With an increasing number of people concerned with where their money is being invested, several green options are available when making environmentally friendly and ethically sound financial investments. And where better to start than with probably your biggest investment of all, your mortgage?
Since the introduction of Home Information Packs and Energy Performance Certificates, energy performance has become a more central part of the buying and selling process. Choosing a greener mortgage means you can also do your bit to optimise the efficiency of your home. There are a growing number of offerings on the mortgage market which will help you make your home energy efficient and put something back into the environment.
Green mortgages are still a niche market and still relatively limited. However, it is growing and looks set to continue as government policy steers the banking community towards a greener, more socially conscious attitude to business.
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Green mortgages refer to the transfer of properties in the form of interest to a money lender or other financial organisations as a mark of security for a debt. The green mortgages are basically the green lands and properties which are given as interest by the owner of the land to the mortgage lender. This way of paying the interest is based on the condition that the land and properties would be returned back to the owner itself after all the debt and mortgages have been cleared. The green mortgages can be given as interest while lending large amount of money for starting a business or an industry. Mostly the real estates are given as green mortgages. The mortgage lender can use these land and properties for agricultural purposes which help in maintaining the fertility of the soil instead of leaving the land idle. Sometimes the green mortgages will be in form of rubber estates, farm lands or other sort of agricultural yielding lands. From these estates the lenders can get the source of interest by selling the yield products.
The green mortgages must be totally legal. Legally there exist two types of mortgages. They are mortgage by legal charge and mortgage by demise. In the mortgage by demise system the mortgage lender become the complete owner of the real estates or properties until the debt or the loan is being completely cleared by the debtor. And in the mortgage by legal charge system the debtor remains the owner of the property legally, on the other hand the lender will also have the rights over the properties and will also have the rights to enforce the properties if required. If the debtor becomes unable to pay back the loan or debt the lender also has the rights to sell the properties to someone else.
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