Four in five mortgage brokers revealed inquiries for mortgages which offered perks for people whose homes conform to high eco standards had increased in the last three months alone.
As many as three in five brokers admitted they had seen a ‘significant increase’ in line with the build-up to COP26.
Nearly all the brokers surveyed by Leeds Building Society, which itself offers green mortgages, said they expected demand for these products to increase over the coming months.
Matt Bartle, director of products at Leeds Building Society, said: “All the publicity around COP26 clearly has made more consumers think about climate change and what they can do as individuals to reduce their environmental impact.
“Our research with intermediaries supports our view this is an issue the public is engaged with and a market which brokers can expect to continue to grow.
“What we’re starting to see is a groundswell of opinion from more people who are recognising that change needs to happen and seeking products to help them reach their goals.”
Raising awareness
Indeed, the poll revealed 43% of brokers said their clients were more likely to choose a green mortgage over a lower cost standard mortgage. This, said Leeds, highlighted the interest in green mortgage products, even at the expense of cheaper standard options.
The problem, however, appeared to be awareness. The survey revealed one in six brokers said more needed to be done to increase awareness of green mortgages and energy efficient living.
Matt continued: “As well as being the right thing to do for the planet, ensuring homes are as energy efficient as possible also means lower bills for owners in the longer term and we’re looking at more ways to share our knowledge and support our members on their way to reducing their environmental impact.”
Green credentials
Earlier this year, Leeds Building Society introduced green mortgage deals to benefit those living in the most energy-efficient properties as part of its efforts to link its products with positive environmental impact.
The ‘most energy efficient’ homes are those which have Energy Performance Certificate (EPC) ratings of A to C. Some other lenders require an A or B rating for the home to be eligible for a green mortgage.
Leeds said it was the first lender to add a carbon offset benefit on all of 95% loan-to-value (LTV) fixed rate mortgages for purchase, and would invest in a process to offset the forecast environmental impact of each home during the initial fixed term of the mortgage.
The Society has already received enough applications for its carbon offset products launched last month, to offset approximately 3,500 tonnes of carbon – the equivalent of around 12,000,000 car miles (petrol) or 25 trips to the moon and back.
You can find out more about green mortgages here.
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