Landlords showing more interest in green mortgages

Three in five landlords are now interested in green mortgages – up from 10% in the noughties, Mortgages for Business research has revealed.

Green mortgages are a relatively new phenomenon in the UK, but they’re generally designed to give discounted mortgage rates for more energy-efficient properties.

Last week The Mortgage Works launched a green further advance mortgage range, which enables landlords to take out cheap loans on top of their regular mortgage to spend on renovations, like upgrading windows or adding solar panels.

Jeni Browne, director of Mortgages for Business, said: “Much of the UK’s housing stock is very energy inefficient, making our homes a major source of greenhouse gas emissions.

“Improving the energy efficiency of the UK’s stock of housing is a priority in the fight against climate change. A green mortgage means that, once they can confirm they have a revised energy rating for their property, the right lender will recalculate their mortgage rate at a discount.

“There are various mortgage products out there but the best are applied on completion of an energy efficiency project and applied for the lifetime of a mortgage.

“Given housing accounts for such a significant chunk of the UK’s carbon emissions, it’s great that landlords are so interested in making greener choices – spurred on, no doubt, by the fact landlords are rushing to upgrade their properties to meet new EPC rating rules by 2028.

“Whatever the reasons, landlords now appear interested in joining the battle to combat climate change. That hasn’t always been the case.”

There is currently a government proposal in the works which could raise the minimum property EPC rating to C for all new tenancies by 2025, and for all existing tenancies by 2028.

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