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Homeowners in favour of lower mortgage rates based on energy performance

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67% of all homeowners or aspiring homeowners say a lower mortgage rate based on their property’s energy performance rating is an appealing element when looking at product features. The focus on the potential allure of green mortgages, with more competitive rates for properties with a better EPC rating, appears to be growing with homeowners now inclined to improve the energy efficiency rating of their home, particularly if such improvements might pay for themselves within a period of time.

48% of homeowners and prospective homeowners would consider improving the energy efficiency rating of their property in order to access a better mortgage product, if it paid for itself in five years. 5% said they would make green improvements to their property if it paid for itself in 15 years and 24% said they plan to improve their property’s energy performance regardless.

There’s no doubting we’re going to be seeing a much greater Government focus on the UK’s housing stock, how its energy efficiency ratings can be improved, and how that might help the UK meet its carbon emission targets. To that end, there appears to be a far greater appreciation of energy efficiency within the home from individuals, and it’s positive to see two-thirds of all those polled saying a mortgage product with rates based on EPC ratings would be an appealing part of the overall product mix.

At the same time, with such incentives in place, more people are likely to consider improving the energy efficiency of their properties and it’s therefore important we have product availability that can support those improvements, whether for owner-occupiers or landlords.

Posted by MMB Finance Swindon on 5 January 2022