Going Green - more eco-mortgages on the market now than a year ago

More lenders have green mortgage deals on the market now compared to a year ago, according to the Mortgage Advice Bureau.

Some 57 per cent of lenders now offer a green mortgage - up four per cent on last year

The research, which polled some of the UK’s largest lenders, found that 59 per cent believe that green or net zero/energy efficient mortgages will become a permanent part of their future product range. 

And 12 per cent of lenders go further, stating they believe green mortgages will become the norm and completely replace mortgages as they are today.

Whilst some agree that green mortgages will play a big part of their future range, that doesn’t mean all traditional mortgages will be replaced. In fact 84 per cent of lenders agree that green mortgages will only form part of the mortgage market.  

Two in five lenders see the expansion of mortgage products to meet more diverse borrower needs as the most pressing future issue, while 16 per cent say there is a need to address affordability challenges of traditional mortgages to broaden the number of borrowers they can support. For 14 per cent it’s managing the ongoing effects of interest rate fluctuations.

Ben Thompson, deputy chief executive of Mortgage Advice Bureau, comments: “Climate change is an issue we all must act on, and the uptick in green mortgage products on the market is encouraging news. It’s important that this shift stays front of mind for both the industry and property owners, as energy bills and what we can do on an individual level to reduce our climate impact stays firmly in the spotlight.

“While the country’s net zero targets may seem far away, the reality is that we’re hurtling towards them at a startling rate. At a policy and industry level, we have a responsibility to push the housing market to a more sustainable future - one that is as energy efficient as possible.

“Green mortgage products (and the wider promotion of these) is one part of the puzzle, and now we must ensure these are being put to prospective buyers.”