THE GREEN MORTGAGE DRIVE
A growing number of landlords, homeowners and tenants are highlighting energy efficiency to help both the environment and keep running costs down. However, in order for green mortgages to really gain traction, an increasing number of lenders must get involved to create genuine competition.
Thankfully, we are seeing a raft of activity across the BTL and residential markets. In Q1, Paragon launched four green further advance products to support landlords in improving the energy performance of their properties. Foundation Home Loans also introduced a ‘Green Reward’ remortgage for landlords to reward those who have paid out to make improvements.
Within the residential market, Ecology Building Society added to its green mortgage range by launching a variable rate renovation mortgage. According to the lender, the new offering is designed to encourage borrowers to upgrade their homes to a better energy efficiency rating. In addition, Newbury Building Society has introduced a ‘GoGreen Reward’ incentive on its self-build mortgage products and Nationwide Building Society has recently cut the rate on its Green Additional Borrowing by up to 1.80%.
It’s great to see such positive forward strides being made and I fully expect more lenders to intensify their green focus in the coming months. Green mortgages will undoubtedly play a vital role in all our futures, and I hope that this area will continue rising in prominence and transition into a ‘mainstream’ mortgage product sooner, rather than later.
Ying Tan - 07.04.2021 | Posted in