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Green mortgages :
Rewarding customers for choosing an energy efficient home
According to a poll from Ipsos MORI , 85 % of UK citizens are concerned about climate change and 52 % are very concerned . To help reduce climate change , lenders are doing their bit to refine their product offering and reward customers who purchase energy efficient homes .
Green Mortgages are a timely implementation , according to UK Government National Statistics , residential properties make up 15 % of the UK total climate emissions . It is important the mortgage industry does what it can to help to lower this and reward customers who are trying to do the same .
A growing choice of products for customers
A recent study conducted by IMLA found that 74 % of lenders are expecting growth in the green mortgage market in the future , with 13 % having already seen a rise in customer interest for green mortgages since the start of the COVID-19 crisis .
IMLA also highlighted that 29 % of lenders suggested they plan or have already launched a green mortgage product , which shows that lenders are reacting to this increased demand from their consumers .
The Government is also playing their part in the green homes initiative , after they announced the Green Homes Grant Scheme , which launched in September .
Property owners are be able to apply for a grant to make energy efficiency improvements to their homes , with the grants covering at least two thirds of the cost of any improvement work , up to a value of £ 5,000 per household . Customers who undergo such home improvements will be putting themselves in a good place to be accepted for a green mortgage
What is NatWest doing to help ?
At NatWest , finding a greener solution to our processes and the way we operate is of paramount importance to us . In line with the plan laid out in the Paris Agreement in 2015 , our current focus involves :
1 Stopping lending to and underwriting companies with more than 15 % of activities related to coal , unless they have a credible transition plan by the end of 2021
1 Stopping lending to and underwriting major oil and gas producers unless they have a credible transition plan in line with the 2015 Paris Agreement by the end of 2021
This activity underpins our ambition to be a leading bank in helping to address the climate challenge , by making our own operations net carbon zero in 2020 and climate positive by 2025 , and by driving material reductions in the climate impact of our financing activity .
NatWest Green Mortgage Products
Our Green mortgage products are available to all intermediaries for residential property purchases . There must be a valid Energy Performance Certificate ( EPC ) listed on the relevant registers with a rating of A or B to be eligible .
Properties where there is currently only a proposed or anticipated EPC Rating of A or B are not eligible .
For more information on our green mortgage proposition , please visit our hub .
Only for use by mortgage intermediaries
Useful information sources :
1 Ipsos MORI – Climate change report
1 Government Green Home Grants Scheme
1 Paris Agreement 1 NatWest Green Mortgage Hub