The Intermediary Mortgage Lenders Association (IMLA) is arguing that there is strong potential for market growth in the area of ‘green’ mortgages, although most of the public remain unaware of them right now.
A green mortgage is one where a lender offers better mortgage terms to a homeowner or seller if they are able to demonstrate that their home meets set standards for environmental friendliness and sustainability. Recent research the trade association conducted showed that 43% of the public had no idea what they were, while 43% of mortgage lenders indicated that demand for these products was low.
This may be about to change however, with the IMLA study finding that the COVID-19 pandemic had changed the minds of many lenders – with 57% stating that they would introduce a product of this kind when the crisis is over.
Furthermore, the study revealed that 13% of UK mortgage intermediaries had experienced a rise in the number of enquiries from borrowers about green mortgages since the start of the pandemic. 58% of advisors and 74% of lenders told IMLA that they were anticipating a spike in demand for these mortgages in the coming years.
Kate Davies from IMLA told FT Adviser that:
“Lenders and advisors are already recognising the opportunities presented by green mortgages as consumers ‘switch on’ to eco-friendly products and recognise the devastating potential of climate change.”
This may be a market area that advisors who have already completed their CeMAP training course look to study up on to capitalise on the coming demand.