Moneyfactscompare.co.uk<\/a>.<\/p>\n\u201cUltimately, lenders should look at pricing their products to encourage those people who are looking at a better EPC [energy performance certificate] rating on their property.\u201d<\/p>\n
The UK has one of the world\u2019s oldest housing stocks, with few homes energy efficient. The average energy efficiency rating of homes in England and Wales is D on a scale of A to G. A is the most energy efficient rating.<\/p>\n
Each lender defines its own rules as to what rating must be achieved to qualify for preferential rates or cashback deals. <\/p>\n
The Moneyfacts data covers mortgage deals available to first-time buyers, second-time buyers and remortgage customers. <\/p>\n
It does not include standard-variable rate products or more exclusive deals such as those for existing customers, shared equity or new-build. It also does not cover add-on products for existing customers seeking additional funds to improve the EPC rating of their property.<\/p>\n
Its analysis shows the average rate for a two-year fixed green mortgage is currently 4.33 per cent, compared with 4.98 per cent across the market. That compares with 6.63 per cent and 6.76 per cent respectively in 2023.<\/p>\n
David Hughes, mortgage adviser at The Mortgage Exchange, said there needed to be more collaboration between lenders and brokers to offer and promote greener products.\u00a0<\/p>\n
\u201cThe benefit to the client [is significant],\u201d he added. \u201cEnergy bills down, mortgage payments down, but also putting the value of the house up considerably.\u201d<\/p>\n
Ian Bhullar, director of sustainability at trade group UK Finance, added: \u201cThe industry remains enthusiastic and committed to supporting the transition to energy-efficient homes, with lenders continuing to make green finance products available. <\/p>\n
\u201cHowever, low demand remains the key challenge. This momentum can only be sustained if the government provides clear and consistent support.\u201d <\/p>\n
He urged the government to set out how it will help \u201ctackle the lack of demand for green home improvements and incentivise greener choices for homeowners\u201d.<\/p>\n","protected":false},"excerpt":{"rendered":"Unlock the Editor\u2019s Digest for free Roula Khalaf, Editor of the FT, selects her favourite stories in this…\n","protected":false},"author":2,"featured_media":366445,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3,4],"tags":[748,393,4884,1144,712,16,15,1764],"class_list":{"0":"post-366444","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-uk","8":"category-united-kingdom","9":"tag-britain","10":"tag-england","11":"tag-great-britain","12":"tag-northern-ireland","13":"tag-scotland","14":"tag-uk","15":"tag-united-kingdom","16":"tag-wales"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/115076333889098464","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/366444","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=366444"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/366444\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/366445"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=366444"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=366444"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=366444"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}