Landlords Looking For Green Mortgage Products13th April 2022|twentytwotwentytwo
Landlords Looking For Green Mortgage Products
At Crown Estate Agents, we know landlords are looking for effective ways to please tenants, while also helping them generate more income.
In recent years, the importance of environmentally friendly issues has increased, and many landlords are looking to make their rental property greener. Incentives that encourage landlords to make positive changes are helpful, and a wider range of mortgage products which assist landlords in offering greener property might be of interest.
Would you switch to a greener BTL mortgage?
According to research carried out by Mortgages for Business, 60% of landlords state they are interested in mortgages which reward energy-efficiency improvements at their rental property.
Jeni Browne is the director of Mortgages for Business, and said: “Much of the UK’s housing stock is very energy inefficient, making our homes a major source of greenhouse gas emissions. Improving the energy efficiency of the UK’s stock of housing is a priority in the fight against climate change.”
Jeni continued by saying; “A green mortgage means that, once they can confirm they have a revised energy rating for their property, the right lender will recalculate their mortgage rate at a discount. There are various mortgage products out there but the best are applied on completion of an energy efficiency project and applied for the lifetime of a mortgage. Given housing accounts for such a significant chunk of the UK’s carbon emissions, it’s great that landlords are so interested in making greener choices – spurred on, no doubt, by the fact landlords are rushing to upgrade their properties to meet new EPC rating rules by 2028. Whatever the reasons, landlords now appear interested in joining the battle to combat climate change. That hasn’t always been the case.”
The survey spoke to more than 300 landlords in the UK, and it represents a significant change in landlord attitudes.
Jeni Browne, explains: “We started trading in 1990 and the findings of our poll match our experience of the market over the last 30 years. Landlords’ attitudes have changed dramatically, particularly in the last decade. Landlords should be interested in these products though – quite apart from the ethical considerations, green mortgages reward landlords with a lower rate when they shrink their carbon footprint.”
Are mature landlords more comfortable with green measures?
The findings suggest it is more mature landlords who are looking to benefit in this way, with the survey suggesting:
- 66% of landlords aged 45 or older are in favour of green mortgages
- 50% of landlords under 45 were interested in green mortgages
There have been some green mortgage products announced this spring, so landlords who are keen to manage their rental accommodation in this way, have options.
Jeni Browne, comments: “Hopefully, our research will help drum up more lender supply. The UK’s largest lenders have launched a wave of climate-change products amid criticism over their slow response to global warming. For instance, one of the big lenders did launch a Green Mortgage last year and we’ve seen others follow suit but have only offered borrowers preferential rates when they purchase an energy-efficient property – rather than rewarding those improving the ecological footprint of the UK’s housing stock.”
Jeni also said; “It’s not enough and that’s why they have failed to impress campaigners. Given Britain has just enjoyed the greenest Easter on record, with almost 80% of the energy used at lunchtime on Easter Sunday coming from zero-carbon sources such as solar and wind, the industry is in danger of falling behind the times unless we do our bit.”
If you plan on letting property, get in touch and we will arrange a property valuation for you. With offices in Pontefract and Leeds, you will find Crown Estate Agents is ideally placed to assist you, so get in touch today.