BDC

New Group Calls For Larger Mortgages For Energy Efficient Homes

Larger mortgages should be allowed for more energy efficient homes, says a new project.

The group is called LENDERS and is comprised of green energy groups and sustainable bodies, building industry experts and mortgage lenders.

It is now trying to show that if mortgage lending decisions consider more accurate estimates of fuel costs, then this may lead to lower energy consuming homes being responsibly afforded larger mortgages.

The Nationwide Building Society chairs the group which is now examining ways of moving on from the way energy costs are currently estimated in the mortgage lending process, which the group believes will help more responsible borrowing.

LENDERS is in the process of gathering data in order to present more accurate energy cost affordability and information that will feed into the process of mortgage lending.

The group say that the scheme will help in supporting more responsible lending. In addition it means that because of their lower fuel bills, more energy efficient homes will also have lower costs in other areas.

As a result these home owners will therefore be able to repay an increased rate of mortgage repayment instalments without the fear of their overall outgoings increasing.

The group believes that this will in turn lead to the capacity to deliver high capital lending amounts.

It is hoped that by making larger mortgages available for more energy efficient homes, this will stimulate consumer awareness of the benefits of greener homes and in the long term it is hoped that this demand will contribute to driving the housing market.

This in turn will increase the value of more energy efficient homes.

The group also say it would encourage more home owners to put more money into improving energy efficient building solutions.

LENDERS also believe that this will be useful for re-mortgages to conduct projects relating to energy refurbishment.

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BDC 299 December 2022