Does A Green Mortgage Suit You?

At Intercounty, we are pleased to help local landlords as best we can. No matter what assistance you need in the Saffron Walden rental market, we are here to help you.

If you are looking to enter the buy-to-let market, it is vital you consider the full range of mortgage options available. There is a growing clamour for environmentally-friendly mortgage products, and from what we have seen in the local market, this is something that interests landlords.

We also stay in touch with the latest news in the industry, ensuring you make an informed decision.

We also stay in touch with the latest national studies

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.”

Green changes work for mature landlords

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.”

For all lettings enquiries in Saffron Walden, please feel free to call us on 01799 513224 or why not email us at swlettings@intercounty.co.uk. With considerable experience in the local letting market, and free valuation services, we look forward to helping you make an informed decision in the Saffron Walden rental sector.