Being aware of our impact on the environment isn’t just a question of being fashionable any more, it’s an essential part of everyone’s life.
Landlords are playing their part, as research shows they are increasingly looking at ways to become more eco-friendly.
Three out of five landlords are now interested in green mortgages, according to new research from Mortgages for Business.
The buy-to-let broker claims that 62 per cent of landlords are interested in such financial deals.
For these landlords, deals are appealing if they offer discounted rates for making properties more energy efficient and shrinking their carbon footprint.
The survey of 300 landlords suggested that there has been a significant shift in green attitudes among landlords.
None of the landlords who had bought their first buy-to-let property before the year 2000 said they’d been interested in green mortgages at the time. And this only rose to 10 per cent of the landlords who’d acquired their first rental property in the noughties.
By contrast, the survey said that two thirds of those over 45 or older were now interested in green mortgages.
Turning conventional wisdom on its head, younger landlords were less interested in green mortgages than older landlords, with only half of landlords under 45 being currently interested in such deals.
Jeni Browne, director of Mortgages for Business, said: “Improving the energy efficiency of Britain’s stock of housing is a priority in the fight against climate change.
“A green mortgage means that, once landlords can confirm they have a revised energy rating for their property, the right lender will recalculate their mortgage rate at a discount.”
She added: “Given housing accounts for such a significant chunk of Britain’s carbon emissions, it’s great that landlords are so interested in making greener choices.”
Lenders offering green mortgages include Paragon Bank, which has lower deposit options for landlords with properties that have an Energy Performance Certificate rating between A and C.
It’s offering mortgages with 20 per cent deposits to landlords with several rental properties, as opposed to the 25 per cent it requires from landlords with less energy efficient properties.
And The Mortgage Works, (TMW), the buy-to-let lending arm of Nationwide Building Society, is offering a green further advance to help landlords improve the energy efficiency of their properties.
The deal has a rate of 1.49 per cent for those with a deposit of at least 25 per cent. The whole loan must be used to fund a range of sustainable home improvements, including the addition of solar panels, window upgrades or replacement, boiler upgrades, air source heat pumps, and electric car charging points.
Daniel Clinton, head of TMW, said: “It's important that we support our landlords in making their properties more sustainable and energy efficient.
“Even small changes, such as adding insulation to pipes can make a big difference in helping improve the green credentials of properties.”
Are you interested in green mortgages? Let us know in the comments.
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22 June 2020 • 9-minute read
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