Twenty7Tec predicted a “mass adoption” of green mortgages within the next three years as borrowers try to keep costs down – and the government aims for a net-zero policy.
All homes will have at least a C energy performance certificate by 2035. Banks and building societies must also have an average band C rating for their loan portfolios by 2030 and have been encouraged to offer lower rates to more environmentally friendly customers.
In the buy-to-let sector, where: all newly let properties must have an EPC of at least a C by 2025, demand for green deals was particularly strong. According to Twenty7Tec, landlords accounted for nearly 40 percent of borrowers seeking green mortgages this week.
James Tucker of the company said: “Landlords are especially looking for green mortgages as they seek lower rates in exchange for making their properties more energy efficient. We expect to see increased demand for green deals in the coming months as the government’s EPC deadline approaches.” comes closer.”
Standard mortgage lending rates have risen again this monthwith the typical five-year fixed rate for a 40 percent deposit deal rising 0.44 percentage points since June to 3.24 percent.
On average, landlords are now paying £174 more per month than at the start of the year, according to letting agent Property Master. The broker’s Angus Stewart said rising rates pose a “real threat to landlord profitability”.
He added, “These latest increases in landlord mortgage costs will shock many.”