Mortgage lenders are warming to green mortgages, according to new research from Mortgage Advice Bureau (MAB).
The firm found that over half of lenders say they are now offering green mortgage 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.
In addition, one in 10 lenders 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, MAB believes it is clear that lenders see this as a joint challenge, with 95% saying it’s the responsibility of builders and lenders to provide more energy-efficient homes.
Many have also become more aware of the role they have to play in the efforts to provide energy-efficient housing stock, with a decrease from 11% last year to just 5% of lenders this year saying it is the responsibility of builders only.
Meanwhile, 95% say green mortgages will be a permanent part of their product range, which again increases from 2021 (92%). Currently, a fifth of lenders (20%) have over five different green mortgage products on offer, however, Ben Thompson at Mortgage Advice Bureau would like to see this increase more and feels the industry can still go further in a bid to achieve net-zero.
Thompson, deputy CEO 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.”
