The Best Ethical Mortgage Providers
Which mortgage providers are the most ethical and sustainable? For the answer, see our Ethical Mortgages comparison table to compare companies’ ethical scores.
The unethical practices of banks
If you’re moving into a new home, you’ll probably be looking for mortgage providers to give you a loan. If you want to compare ethical mortgage lenders with ethics and sustainability in mind, The GOOD Shopping Guide is a great place to start. Researching and rating brands on ethical criteria since 2001, The GOOD Shopping Guide is one of the UK’s most trusted independent sources of ethical financial information.
Our Ethical Mortgages comparison table shows you how mortgage providers perform on ethics and sustainability. This allows you to compare mortgage providers not only on cost, but on their ethical treatment of the Environment, Animals and People. It also allows you to identify lenders involved in responsible lending practices — and those that fall short.
Previously, mortgages were provided by building societies. Nowadays many banks and independent mortgage providers are also offering you loans to purchase your new property. This has complicated the ethical nature of mortgages, as banks in particular are involved in an array of unethical practices.
Many conventional banks invest in controversial businesses such as weapons, cluster munitions, fossil fuels and deforestation. By choosing an unethical bank for your mortgage provider, your money could be funding some extremely harmful industries. The Financial Conduct Authority (FCA) has introduced sustainability disclosure requirements for UK financial firms, meaning lenders are increasingly expected to be transparent about where your money goes — but independent research from The GOOD Shopping Guide remains one of the clearest ways to compare lenders’ ethical records.
Buying a home is likely to be the biggest financial commitment most people ever make. Research by ShareAction, the UK NGO that campaigns for responsible investment, has found that major high street banks continue to direct billions of pounds into fossil fuel industries — meaning that for many homeowners, their monthly mortgage payment is indirectly funding the climate crisis. Choosing an ethical mortgage lender is therefore one of the most impactful financial decisions a consumer can make.
What is a building society?
By contrast, building societies do not invest as frequently as banks do. They are therefore less likely to be involved in unethical investments, making them a more consistently ethical option when choosing mortgage providers. These issues should be taken into consideration when you compare mortgages.
To find out more about the ethical bank for you, read our Ethical Banks & Building Societies article. You may also want to explore our Ethical Savings comparison table and our Ethical Investments article, which cover related financial products from many of the same providers. For a broader overview of ethical finance across banking, pensions and investments, our guide to navigating ethical finance is a useful starting point. Many of the banks included in this list are also mortgage providers so it may give you some additional insight.
Our research into the most and least ethical mortgage providers
Our research into mortgage providers found that banks are often involved in more controversial issues than building societies and typically receive lower ratings within our tables. For instance, HSBC, which receives an extremely low rating within our research, has received significant backlash in the media for its unethical investments. HSBC has been criticised by several environmental and campaign groups for its links to fossil fuel funding, deforestation and human rights abuses. The data speaks for itself.
Banks are often considered less ethical because they need to generate profit for their shareholders. In comparison, building societies are mutuals. This means that building societies have members instead of shareholders, meaning their customers have a vote in the decision-making process. Research shows that 74% of UK savers would like their money to have a positive impact on the environment and society — yet the majority of high street mortgage lenders fall well short of this expectation.
At The GOOD Shopping Guide, we recognise that being a mutual is a more ethical business model. We therefore award a top rating under Mutual Status to all building societies, which you can look out for in our Ethical Mortgages comparison table when you compare mortgages. For a full explanation of our rating criteria, including how we assess responsible lending, political donations, and environmental reporting, visit our How We Rate page.
Our solution: Compare mortgages on The GOOD Shopping Guide
Though it is generally better to select from a building society when choosing from a range of mortgage providers, not all banks are unethical. Ethical banks such as Triodos Bank and Charity Bank are also good ethical options to consider.
It is also worth looking out for green mortgages, which are offered by a growing number of UK lenders. Green mortgages typically offer preferential interest rates for properties with high energy efficiency ratings (EPC A or B), rewarding buyers and homeowners who choose more sustainable homes. Ecology Building Society, which sits above the benchmark in our Ethical Mortgages comparison table, is a particularly notable example — it specialises in lending for eco-friendly and sustainable properties. The Bank of England has confirmed that green mortgage discounts have grown significantly in recent years, with lenders offering rate reductions of up to 15 basis points for high-EPC properties. It is worth noting, however, that a green mortgage is not the same as an ethical mortgage — a lender can offer green products while still investing in harmful industries. Our Ethical Mortgages comparison table assesses both dimensions, giving consumers the full picture.
Luckily, we have made things easier for you. Our Ethical Mortgages comparison table is a great way to compare mortgages without having to do all the research yourself. Simply look for mortgage providers within the green section of the table!
If you live in the UK, you may be eligible for government energy efficiency schemes such as the Great British Insulation Scheme, which can help you install more energy-efficient insulation in your home. The UK Government offers support to homeowners looking to reduce their energy bills and environmental impact — visit the UK Government website for the latest available schemes.
Create a more energy-efficient home, and you can reduce energy consumption and its environmental impact. You’ll also save money on your utility bills!
Your mortgage is just one part of your ethical financial picture. If you are also considering how your savings or investments are being used, see our Ethical Banks & Building Societies comparison table, our Ethical ISAs guide, and our Ethical Investment article for further guidance. Mortgage providers that hold The GOOD Shopping Guide’s Ethical Accreditation have been independently verified to meet our ethical benchmark — find out more about the benefits of Ethical Accreditation.
See our Ethical Mortgages comparison table to compare brands
The thousands of brands listed on our Ethical comparison tables have been thoroughly investigated and researched by our team. To read a thorough article on the background, values, and sustainable practices of any specific brand, simply click on its name.
Ecology Building Society, The Co-operative Bank, Coventry Building Society, Leeds Building Society, Skipton Building Society, Yorkshire Building Society, Virgin Money, AIB, Atom Bank, Newcastle Building Society, TSB, Bank of Ireland, Metro Bank, Santander, Bank of Scotland, Halifax, Lloyds Bank, NatWest, RBS, Barclays, First Direct and HSBC.
What does it mean for a mortgage to be ethical?
An ethical mortgage isn’t just about interest rates — it’s about where the money you borrow (and where the lender invests) goes. Ethical mortgages look at whether banks or lenders invest in controversial industries like fossil fuels, weapons or deforestation, and whether they have transparent, responsible lending and sustainability policies. Building societies, being mutuals, tend to be more ethical than many large banks.
Why are traditional banks often considered less ethical mortgage providers?
Many conventional high‑street banks invest heavily in controversial sectors, including fossil fuels, deforestation and human rights‑linked industries, meaning borrowers’ money could indirectly support harmful activities. These practices contribute to lower ethical ratings for loans and mortgages from large banks, as opposed to lenders with more transparent, responsible investment and lending policies.
What ethical advantages do building societies have for mortgage borrowers?
Building societies are mutual organisations, meaning they are owned by their members rather than external shareholders. This structure typically results in fewer controversial investments and more customer‑oriented decision‑making. For ethical seekers, this mutual status often leads to higher ethical scores compared with large banks, especially when looking at responsible investment and transparency.
Are some mainstream mortgage lenders considered unethical, and why?
Several large banks such as HSBC, Barclays, NatWest and others receive low ethical scores. These lenders are criticised for irresponsibly lending to or investing in industries linked to fossil fuels, environmentally damaging projects and controversial global business practices. Such activities lower their ethical ratings even if they have some sustainability reporting.
How can someone make their mortgage choice more ethical?
Consumers can compare ethical ratings of lenders (not just interest rates), favour mutuals/building societies, and consider lenders that support green home initiatives or transparent sustainability policies. Researching a provider’s investment and lending policies — especially whether they avoid controversial sectors — helps align your mortgage with ethical values.
Is Ecology Building Society an ethical Mortgages brand?
Ecology Building Society sits above the benchmark on The GOOD Shopping Guide’s Mortgages Ethical Ratings Table. It performs well in areas such as environmental protection, responsible lending, and other ethical criteria, showing strong commitment to sustainable financial practices. However, it currently lacks Ethical Accreditation, which if pursued could further demonstrate its commitment to ethical and sustainable business practices.
Is The Co‑operative Bank an ethical Mortgages brand?
The Co‑operative Bank sits above the benchmark on The GOOD Shopping Guide’s Mortgages Ethical Ratings Table. It performs well in categories such as environmental protection, responsible lending, and mutual status, showing strong ethical practices, though it lacks Ethical Accreditation. If it pursued Ethical Accreditation, this could further highlight its dedication to ethical and sustainable business practices.
Is Coventry Building Society an ethical Mortgages brand?
Coventry Building Society sits above the benchmark on The GOOD Shopping Guide’s Mortgages Ethical Ratings Table. It scores well in areas like environmental reporting, avoidance of harmful activities and responsible lending, showing solid ethical commitments. However, it has not yet achieved Ethical Accreditation, and gaining this could further demonstrate its dedication to ethical and sustainable business practices.
Is Nationwide an ethical Mortgages brand?
Nationwide sits above the benchmark on The GOOD Shopping Guide’s Mortgages Ethical Ratings Table. It does well in areas such as responsible lending, mutual status and environmental protection, demonstrating positive ethical commitments. However, it lacks Ethical Accreditation, which if obtained could further demonstrate its dedication to ethical and sustainable business practices in the mortgage sector.
Is Skipton Building Society an ethical Mortgages brand?
Skipton Building Society sits above the benchmark on The GOOD Shopping Guide’s Mortgages Ethical Ratings Table. It performs well in areas including environmental reporting, environmental protection and responsible lending, indicating solid ethical commitments, though it has not yet gained Ethical Accreditation. Pursuing such accreditation could further show its dedication to ethical and sustainable business practices in mortgage provision.
Is Virgin Money an ethical Mortgages brand?
Virgin Money sits below the benchmark on The GOOD Shopping Guide’s Mortgages Ethical Ratings Table. It performs less well in several areas of ethical assessment, indicating limited commitment to some responsible and sustainable practices. Because it falls below the benchmark, readers may wish to consult The GOOD Shopping Guide’s Mortgages Ethical Ratings Table to identify mortgage providers that meet or exceed the ethical benchmark standard.
Is Yorkshire Building Society an ethical Mortgages brand?
Yorkshire Building Society sits above the benchmark on The GOOD Shopping Guide’s Mortgages Ethical Ratings Table. It performs well in areas such as responsible lending, environmental reporting and avoidance of harmful activities, reflecting solid ethical commitments. However, it currently does not hold Ethical Accreditation; obtaining it could further demonstrate its dedication to ethical and sustainable business practices.
Is Leeds Building Society an ethical Mortgages brand?
Leeds Building Society sits below the benchmark on The GOOD Shopping Guide’s Mortgages Ethical Ratings Table. It performs less well in several areas of ethical assessment, indicating limited alignment with the guide’s ethical expectations. Because it falls below the ethical benchmark, readers may wish to consult The GOOD Shopping Guide’s Mortgages Ethical Ratings Table to find mortgage providers that better meet ethical and sustainable standards.
Is Atom Bank an ethical Mortgages brand?
Atom Bank sits below the benchmark on The GOOD Shopping Guide’s Mortgages Ethical Ratings Table. Its ethical performance is limited in several areas, indicating it has not yet aligned with the guide’s expectations for sustainable and responsible financial practices. Because it falls below the benchmark, readers may wish to consult The GOOD Shopping Guide’s Mortgages Ethical Ratings Table to identify mortgage providers that better meet ethical and sustainable standards.
Is AIB an ethical Mortgages brand?
AIB sits below the benchmark on The GOOD Shopping Guide’s Mortgages Ethical Ratings Table. It performs less well across several ethical categories, suggesting limited alignment with sustainable and responsible financial practices. Because it falls below the ethical benchmark, readers may wish to consult The GOOD Shopping Guide’s Mortgages Ethical Ratings Table to find mortgage providers that better meet ethical and sustainable standards.
Is Metro Bank an ethical Mortgages brand?
Metro Bank sits below the benchmark on The GOOD Shopping Guide’s Mortgages Ethical Ratings Table. While it shows some positive reporting on environmental targets and avoids political donations, its overall ethical performance does not meet the guide’s expectations in areas such as responsible investment and accreditation. Because it falls below the ethical benchmark, readers may wish to consult The GOOD Shopping Guide’s Mortgages Ethical Ratings Table to find providers that better meet ethical and sustainable standards.
Is Newcastle Building Society an ethical Mortgages brand?
Newcastle Building Society sits below the benchmark on The GOOD Shopping Guide’s Mortgages Ethical Ratings Table. Its performance in ethical assessment is limited, with weaker alignment in key areas of responsible and sustainable business practices. Because it falls below the ethical benchmark, readers may wish to consult The GOOD Shopping Guide’s Mortgages Ethical Ratings Table to find mortgage providers that better meet ethical and sustainable standards.
Is TSB an ethical Mortgages brand?
TSB sits below the benchmark on The GOOD Shopping Guide’s Mortgages Ethical Ratings Table. It performs less well in key areas of ethical assessment, including lending practices and responsible investment, indicating limited alignment with the guide’s ethical expectations. Because it falls below the benchmark, readers may wish to consult The GOOD Shopping Guide’s Mortgages Ethical Ratings Table to find mortgage providers that better meet ethical and sustainable standards.
Is Bank of Ireland an ethical Mortgages brand?
Bank of Ireland sits below the benchmark on The GOOD Shopping Guide’s Mortgages Ethical Ratings Table. Its performance in ethical assessment shows limited strength across responsible and sustainable practices, indicating it does not align closely with the guide’s ethical expectations. Because it falls below the benchmark, readers may wish to consult The GOOD Shopping Guide’s Mortgages Ethical Ratings Table to identify mortgage providers that better meet ethical and sustainable standards.
Is Bank of Scotland an ethical Mortgages brand?
Bank of Scotland sits below the benchmark on The GOOD Shopping Guide’s Mortgages Ethical Ratings Table. Its performance shows shortcomings in responsible lending and ethical investment areas, despite reasonable environmental reporting. Because it falls short of the guide’s ethical benchmark, readers may wish to consult The GOOD Shopping Guide’s Mortgages Ethical Ratings Table to find mortgage providers that better meet ethical and sustainable standards.
Is Halifax an ethical Mortgages brand?
Halifax sits below the benchmark on The GOOD Shopping Guide’s Mortgages Ethical Ratings Table. While it shows positive reporting on environmental targets, its ethical performance is weak in areas such as irresponsible lending and responsible investment, indicating limited alignment with the guide’s ethical expectations. Because it falls below the ethical benchmark, readers may wish to consult The GOOD Shopping Guide’s Mortgages Ethical Ratings Table to find providers that better meet ethical and sustainable standards.
Is Lloyds Bank an ethical Mortgages brand?
Lloyds Bank sits below the benchmark on The GOOD Shopping Guide’s Mortgages Ethical Ratings Table. Its performance is limited in key areas of ethical assessment, including responsible lending and avoidance of harmful activities, indicating it does not align strongly with the guide’s ethical expectations. Because it falls below the benchmark, readers may wish to consult The GOOD Shopping Guide’s Mortgages Ethical Ratings Table to find mortgage providers that better meet ethical and sustainable standards.
Is NatWest an ethical Mortgages brand?
NatWest sits below the benchmark on The GOOD Shopping Guide’s Mortgages Ethical Ratings Table. Its ethical performance is limited across key areas such as responsible lending and sustainable investment, suggesting it does not align closely with the guide’s expectations for ethical financial practices. Because it falls below the ethical benchmark, readers may wish to consult The GOOD Shopping Guide’s Mortgages Ethical Ratings Table to find providers that better meet ethical and sustainable standards.
Is Barclays an ethical Mortgages brand?
Barclays sits below the benchmark on The GOOD Shopping Guide’s Mortgages Ethical Ratings Table. Its performance in ethical assessment is limited in areas such as responsible lending and sustainable investment, suggesting it does not align closely with the guide’s ethical expectations. Because it falls below the ethical benchmark, readers may wish to consult The GOOD Shopping Guide’s Mortgages Ethical Ratings Table to find mortgage providers that better meet ethical and sustainable standards.
Is RBS an ethical Mortgages brand?
RBS sits below the benchmark on The GOOD Shopping Guide’s Mortgages Ethical Ratings Table. Its performance in ethical assessment is limited across key areas such as responsible lending and sustainable investment, indicating it does not align closely with the guide’s expectations for ethical and sustainable financial practices. Because it falls below the ethical benchmark, readers may wish to consult The GOOD Shopping Guide’s Mortgages Ethical Ratings Table to find providers that better meet ethical standards.
Is Santander an ethical Mortgages brand?
Santander sits below the benchmark on The GOOD Shopping Guide’s Mortgages Ethical Ratings Table. Its performance in ethical assessment shows weakness in areas such as responsible lending, sustainable investment and avoidance of harmful activities, suggesting it does not align closely with the guide’s ethical expectations. Because it falls below the ethical benchmark, readers may wish to consult The GOOD Shopping Guide’s Mortgages Ethical Ratings Table to find mortgage providers that better meet ethical and sustainable standards.
Is First Direct an ethical Mortgages brand?
First Direct sits below the benchmark on The GOOD Shopping Guide’s Mortgages Ethical Ratings Table. Its performance is limited across several ethical categories, indicating it does not align closely with the guide’s expectations for sustainable and responsible financial practices. Because it falls below the ethical benchmark, readers may wish to consult The GOOD Shopping Guide’s Mortgages Ethical Ratings Table to find mortgage providers that better meet ethical and sustainable standards.
Is HSBC an ethical Mortgages brand?
HSBC sits below the benchmark on The GOOD Shopping Guide’s Mortgages Ethical Ratings Table. Its ethical performance is limited across key areas such as responsible lending and sustainable investment, indicating it does not align closely with the guide’s expectations for ethical and sustainable financial practices. Because it falls below the ethical benchmark, readers may wish to consult The GOOD Shopping Guide’s Mortgages Ethical Ratings Table to find mortgage providers that better meet ethical and sustainable standards.
How does The GOOD Shopping Guide's Ethical Accreditation complement other accreditations?
The GOOD Shopping Guide doesn’t replace existing certifications, it ensures your ethical credentials are clearly recognised so they are trusted by consumers. By appearing in our comparison tables, your brand reaches an audience that is actively seeking genuinely ethical options, while also being referenced by Google and AI search tools to enhance credibility and discoverability.
How is The GOOD Shopping Guide's Ethical Accreditation different from other accreditations?
Unlike many accreditations that focus mainly on compliance or internal audits, The GOOD Shopping Guide provides scored, research-led assessments across environment, people and animals. Our tables are consumer-facing and freely accessible, making it easy for shoppers and AI tools to compare brands based on verified performance, not just promises.
How does The GOOD Shopping Guide choose who is eligible for accreditation?
The GOOD Shopping Guide audits brands for their ethical impact across a variety of criteria in the human, animal and environment categories. We research the records of brands and their parent companies, and rate them across those criteria. If they are found to be above our benchmark, they are eligible to apply for Ethical Accreditation.
How can I apply for Ethical Accreditation?
You can apply for Ethical Accreditation if your brand is assessed as above our benchmark. Click on this link to fill out our online form, and our researchers will assess your brand’s viability for Ethical Accreditation.