Upcoming Webinar: what is a green mortgage?

The Green Mortgage Advice Initiative (GMAI) brings you a new webinar: What is a green mortgage. The event takes place on Monday 29th July…

Important fee changes for mortgage intermediary firms in 2024/25

The FCA has released its policy statement on the Fees & Levies payable by regulated firms for 2024/25 – we pull out the important fee changes…

AMI secures significant win for the protection industry

We are delighted that the FCA has accepted our argument that the protection industry should be out of scope of the Advice Guidance Boundary Review…

Mortgage Vision returns for 2024 with extra locations

This year’s Mortgage Vision events take place across the country in September and October, with some new locations added for 2024…

AMI Consumer Duty Factsheets update

Regulated firms are required to bring any closed products and services they continue to offer into the scope of Consumer Duty by 31 July 2024…

Your June ’24 update from AMI Chief Executive Robert Sinclair

AMI Chief Executive Robert Sinclair gives his June update in what has been a quiet month for the industry with the upcoming general election…

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July 16 – The future of green homes

With fossil fuels a limited resource, global energy prices are expected to continue to rise.  Despite the relatively stable price of domestic gas and electricity over the past five years there is an upward pressure on household energy bills. Together with pledges to reduce greenhouse gas emissions, we will over time see a greater demand for greener homes.

In assessing affordability lenders calculate borrowers’ fuel costs using data based on historic household income which does not take any consideration of a property’s energy efficiency.  A group of organisations have launched the LENDERS project which aims to demonstrate that more accurate fuel cost estimates can be used by lenders, thereby allowing them to grant larger mortgages to lower energy homes.

Any initiative which encourages more efficient and greener homes should be welcomed; households benefit from lower energy bills and it’s a more sustainable option going forward.   This project will of course have many hurdles along the way and there will be wider impacts to consider.  For example, if the maximum borrowing amount varies depending on a property’s energy efficiency, how will this affect the buying process?  Will lenders even choose to offer larger mortgages for lower energy homes?  The long term goal to stimulate demand, in turn driving an increase in the values of greener homes and in the number being built is ambitious, but admirable.  Notwithstanding consumer behaviour, industry and government will need to work together if this is to be achievable.

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