Will owners of energy inefficient homes struggle to get a mortgage?

Lenders will need to incentivise the adoption of green measures to improve efficiency, but in the short-term most borrowers will be concentrating on survival, and meeting essential cost of living challenges, rather than the cost of a heat pump or solar panels. There will be so many properties not to EPC 'C' rating, or able to achieve this standard, that a blanket culling for mortgages looks unlikely. Once mortgage rates improve, inflation is stable and the economy is ready, then will be the time to drive this green message forward.

With daily headlines about climate change, homeowners and landlords cannot escape the need to play their part in the global effort. Whilst lenders grapple with Consumer Duty, property owners need to address their Public Duty and assess the energy efficiency of their homes. The cost of living crisis, of course, means hard-pressed homeowners are diverting their attention to meeting their mortgage and energy bill payments rather than spending on improving their homes. Nationwide Building Society’s initiative to grant interest-free further advances was sadly not adopted by other lenders. This would enable homeowners to act sooner than later. Furthermore, green mortgage products are rewarding buyers who buy properties rates A-C with a lower interest rate but the gap isn’t significant enough yet. EPC ratings are not on every buyer's radar. It’s a minor detail as long as they can get a mortgage. This mindset will not change until home sellers are forced to upgrade their properties.