Green Home Loans Help Needed To Help Borrowers

By Cynthia Taylor

Banks and the UK government are being urged to help householders, who wish to invest in green friendly properties, to be able to borrow to help them do so.

Mr. Neil has expressed a wish to see banks offering lending and mortgage products that are more accessible for people who wish to invest in energy efficient properties, thus allowing for lower carbon emissions and lower energy bills.

He continued that by helping to increase the uptake of more homes that are energy efficient would be a big step towards beating fuel poverty. He felt that the financial institutions were missing the opportunities and need to adapt their products with the introduction of green mortgages. He felt that the financial institutions should be able to recognisethat the green issues and technologies are ‘the key’ to energy efficient homes, and therefore a vital element towards economic recovery.

To secure a mortgage lenders require an average deposit of 20% or even 25% to be eligible to secure a mortgage. At the same time home costs continue to grow with increasing household energy costs of about 128% between the years of 2000-2010.

Prospective and existing home owners should be supported and encouraged to invest in new technology as well as energy efficient measures, therefore, lenders need to be part of this solution by the provision of suitable home loans.

A summit for Greener Homes is to be held on November 23rd at the South Lanarkshire College, East Kilbride, where financers and developers will discuss the mortgaging of environmentally friendly property developments.

Dr. Dan Barlow who is head of Policy at the WWF, Scotland has said that they welcome a government’s call to action.

Dr. Barlow also said that favourable interest rates for green mortgages would be an excellent incentive for homeowners, who wish to invest in green measures, such as insulation of lofts and cavity walls, to make their homes energy efficient as well as reducing energy bills.

He felt that it was ‘high time’ that the banking sector stepped up their efforts to support homeowners to green their homes.