Heron Financial arranged a £150,000 mortgage with Barclays on its Green Home / New Build product at an initial fixed rate of 3.98% on a 2-year fix for a solo self-employed first-time buyer Graphic Designer with one year of trading and one set of accounts. The mortgage sat at approximately 68% LTV against a £220,000 purpose-built flat in Berkshire. The case completed in December 2025.
The client
The client was a British self-employed Graphic Designer in their first year of trading as a sole trader, buying a first home solo. They were targeting a purpose-built flat in Berkshire and had built a £70,000 deposit. With only one year of self-employed accounts and a single income, the case needed careful lender placement to land at a competitive rate.
The case at a glance
- Buyer: Solo first-time buyer, British national, self-employed
- Occupation: Self-Employed Graphic Designer (Sole Trader, 1 year trading, 1 year accounts)
- Property type: Purpose-built flat
- Location: Berkshire
- Purchase price: £220,000
- Deposit: £70,000 from personal savings (~32%)
- Loan amount: £150,000
- LTV: Approximately 68%
- Lender: Barclays
- Product: 2-Year Fixed Rate (Green Home / New Build product)
- Initial fixed rate: 3.98%
- Repayment method: Capital and interest
The challenge
Three features shaped this case.
1. The Energy Efficient Home mortgage product. Several UK lenders, including Danske Bank, offer specific mortgage products for properties meeting defined energy-efficiency standards, typically a high EPC rating (often A or B, sometimes C). The trade-off is typically a sharper rate or specific incentive for borrowers buying or remortgaging into qualifying properties. The product is part of the wider “green mortgage” category, driven by lender appetite to support energy-efficient housing stock and align lending with environmental criteria. At 4.15% on a 2-year fix at 88% LTV, the rate sat at the competitive end of mainstream pricing for the LTV tier.
For buyers considering newer builds or properties with strong energy ratings, the Energy Efficient Home product can offer real rate savings compared to standard residential rates at the same LTV. The product range varies by lender, and not every lender has a dedicated green product line. Lender choice matters more in this category than in standard residential lending.
2. Indefinite Leave to Remain status. ILR is granted to non-British nationals who have lived in the UK for a defined qualifying period (typically five years) and meet residency, financial and other criteria. ILR holders have permission to live and work in the UK without time limit and are treated by most mainstream mortgage lenders very similarly to British citizens.
That said, ILR holders sometimes face additional checks at the application stage, particularly on length of UK address history, payslip evidence covering the most recent two or three years, and clear demonstration of the ILR status itself (the share code or biometric residence permit).
Lender appetite for ILR applicants varies. Some major lenders process ILR applications identically to British citizen applications; others apply specific criteria. The right placement matters.
3. Joint home mover application at 88% LTV. With £75,000 in savings against a £627,000 purchase, the deposit gave a 12% contribution and placed the loan at 88% LTV. At this LTV, the case sat just below the 90% threshold that marks the upper edge of standard mainstream lending. Rates step up at higher LTVs, and the choice of lender, product and term has a meaningful impact on the monthly payment.
Danske Bank, with its Energy Efficient Home product offering competitive 88% LTV pricing for a qualifying property, accepted the ILR applicants and the joint application structure cleanly. The 4.15% rate sat at the lower end of mainstream pricing for the LTV tier at the time.
How Heron Financial approached the recommendation
The Heron adviser worked through affordability against the clients’ recorded PAYE income, confirmed the ILR status and the deposit source, and matched the case to a lender that combined three specific features: acceptance of ILR applicants, a competitive product at 88% LTV, and an Energy Efficient Home product matching the property’s energy rating. Danske Bank came through on all three.
Heron Financial managed the application through underwriting, including the ILR documentation and the energy efficiency evidence for the property.
The outcome
The case completed in December 2025. The clients moved into their new Berkshire home with a fixed monthly payment locked in for the next two years.
What this means for buyers in a similar position
For borrowers considering energy-efficient properties, green mortgage products are a category worth exploring. A few practical points worth knowing.
Energy efficient mortgage products require the property to qualify. Most lenders set the threshold at EPC A or B, sometimes C with conditions. New builds often qualify through modern building regulations. Retrofitted properties with new windows, insulation, heat pumps or solar panels can also qualify depending on the lender’s criteria.
The rate or incentive varies by lender. Some lenders offer a sharper headline rate. Others offer cashback or product fees rebated. The right product depends on the specific property, LTV and the borrower’s wider position.
Green mortgages cover both purchases and remortgages. Borrowers remortgaging into an energy-efficient home, or staying in one, can access the same product range. Some lenders also offer “additional borrowing” products for energy-efficient improvements like solar installation.
ILR holders can access mainstream UK mortgages. ILR confers indefinite permission to live and work in the UK, and most mainstream lenders treat ILR applicants very similarly to British citizens. Application requires evidence of the ILR status alongside standard income and identity documentation.
88% LTV is a competitive bracket. Just under 90% LTV gives access to a wider product range than the 90% to 95% LTV tier. For home movers with around 12% deposit, lender choice and product term are the key decisions.
FAQs
What is an Energy Efficient Home mortgage?
An Energy Efficient Home mortgage is a specific product offered by some UK lenders for properties meeting defined energy efficiency standards, typically a high EPC rating. The product often carries a sharper rate, cashback or other incentive compared to the lender’s standard residential range. In this Heron Financial case, Danske Bank’s Energy Efficient Home product provided a 4.15% rate on a 2-year fix at 88% LTV.
Which lenders offer green mortgages in the UK?
Several UK lenders offer green mortgage products, including Danske Bank, Barclays, NatWest, Halifax and others. Product ranges and qualifying criteria vary. The right placement depends on the specific property, LTV and the borrower’s wider position. Heron Financial reviews green mortgage options on every case where the property might qualify.
How does my EPC rating affect my mortgage options?
A deposit of at least 40% of the purchase price will typically place a borrower in the sub-60% LTV bracket. The precise number depends on the property valuation rather than the offer price.
Can ILR holders get a mortgage in the UK?
Yes. Indefinite Leave to Remain confers permission to live and work in the UK without time limit, and most mainstream UK lenders treat ILR applicants very similarly to British citizens. In this Heron Financial case, joint Indian-national applicants with ILR secured a £552,000 mortgage with Danske Bank on their Energy Efficient Home product at 88% LTV.
Is Danske Bank good for UK mortgages?
Danske Bank operates in the UK and offers a range of mortgage products including its Energy Efficient Home range. Heron Financial assesses every case on its merits and selects a lender based on affordability, product pricing, criteria fit and service standards at the time of application.
