13-03-2008
No new green mortgage lenders expected
News by Adfero for Simply Business - independent providers of public liability insurance, business finance, landlord insurance, buy-to-let mortgages & commercial mortgages.
Buy-to-let mortgage borrowers are unlikely to see more green loans for house purchase become available, it has been suggested.
Darren Cook, head of mortgages at financial information portal Moneyfacts, said as a result of the credit crunch, it is not likely that new mortgage lenders will start offering green options.
He explained that providers of residential and buy-to-let mortgages are currently focusing on underwriting and "a healthy lending book".
Things such as lending criteria and loan-to-value are the aspects under the spotlight, according to Mr Cook.
"So the lenders who are in the [green mortgage] marketplace at the moment will probably continue, but I don't think there's going to be a big [move] towards additions to the market," he added.
There are currently five mortgage lenders who provide green products. Some plant trees for each product taken out (in the case of Norwich and Peterborough), while some, such as Giraffe and the Hanley Economic building society, donate money to carbon offsetting charities.