Defaqto has examined how the green mortgage market is growing, incentivising homeowners to make their properties more environmentally sustainable.
Overall, there are 18% more green mortgages than there was six months ago. In total, there are 648 green mortgagees available today compared to 550 last October.
The biggest change is in the buy-to-let sector where there are now more than three times as many mortgages available to landlords now. There are 292 green buy-to-let products on the market today, compared with just 85 last October. This is being driven by changes in the regulations for rental properties, which will have to have an EPC rating of C and above by 2025 for new tenancies.
Conversely, the number of green mortgage products available to residential borrowers has fallen. Today they are just 356 mortgages available compared with 465 last year, around a quarter less.
Katie Brain, consumer banking spokesperson at Defaqto, said: “It is encouraging to see that the green mortgage market is growing. Although this is predominantly in the buy-to-let sector, this still represents a sizeable number of homes that will be made more energy efficient as a result.
“If you are thinking of getting a green mortgage, it is worth discussing your options with a mortgage adviser who can explain what is available to you. Generally, newer homes will meet the criteria as they are built with modern regulations in mind, but older properties may need to be updated to ensure they are energy efficient. The cashback incentives typically offered with these ‘green’ mortgages can make it worthwhile as opposed to the standard mortgage range.”