Copy article

Green mortgages and second charges

Journalist: Anna Sagar, Mortgage Solutions / Specialist Lending Solutions

ended 13. April 2022

Interested to speak to brokers about green mortgages and second charge mortgages. West One Loans released an industry-first second charge mortgage product this week. 

  1. Do you expect more lenders to follow suit?
  2. Do you think customers would be interested in a green second charge?
  3. What would the benefits/challenges be?
  4. Are more customers coming to you asking about green mortgages?

 

2 responses from the Newspage community

Copy all

Copy

Editor
Imran Hussain
Director at Harmony Financial Services
If the demand is there from borrowers, more lenders will follow suit as demand will drive product innovation in this space as the biggest hurdle shall be the size of the market and properties that have an EPC rating between A and C that require this as a green more is the last thing a client usually asks about as the priority in most cases is can they get one against the home they are looking to purchase.
Copy

Dominik Lipnicki
Director at Your Mortgage Decisions Ltd
Without a doubt green mortgages are here to stay and more lenders will offer them in the future. It makes sense that the second charge market follows suite and offer green products as more energy efficient homes provide better security for the lender and encourage borrowers to insulate their homes. The benifits of green products to the consumer is lower rates whilst the lender benifits from better security and a borrower spending less on the ever increasing cost of energy. The real downside, other than few products is that many older homes simply do not qualify and with the cost of living crisis, fewer people hvae th spare funds to get their properties into the required A or B rating. I find that most consumers do not know about green mortgages as there has been very little education or publicity around these roducts, hence good, independent advice is key.