Lenders on board with green mortgages

Mortgage lenders are warming to green mortgages, research from Mortgage Advice Bureau shows.

Over half of lenders say they are now offering green products compared to just a third this time last year, and 98% of those asked will offer them in the future if they don’t already.

Green mortgage products typically offer a slightly better rate for those buying a property with an EPC rating between A and C.

Ben Thompson, deputy chief executive of Mortgage Advice Bureau, said: “The climate issue is one we must act on, and every lender can play their part.

“With that in mind, it is really encouraging to see the uptick in lenders offering green mortgages, and letting people know about them is key. With COP27 in Egypt having just finished, the climate is once again front and centre, and we will always help lenders and intermediaries to push green mortgages.”

Most (95%) lenders say green mortgages will be a permanent part of their product range.

Meanwhile one in 10 say green mortgages will in time completely replace all existing products on offer.

When it comes to how more environmentally friendly homes will be built, most (95%) say it’s the responsibility of both builders and lenders to provide more energy-efficient homes.

Currently, a fifth of lenders (20%) have over five different green mortgage products on offer, however Thompson at Mortgage Advice Bureau would like to see the industry go further in pursuit of net zero.

Leave a Reply