Leeds Building Society (BS) is aiming to make its range of 95% loan-to-value (LTV) products more environmentally friendly by adding the option of a carbon footprint offset.
What this will mean is that anyone buying a property using a 95% LTV loan from Leeds BS can to offset any carbon footprint produced by the property across the duration of their mortgage. The fixed-term repayment periods for these loans that Leeds BS offers are ten, five, three and two years, and the option will be available to borrowers irrespective of their property’s energy efficiency evaluation.
The data from research conducted by Leeds BS indicates that carbon of roughly 4.2 tonnes is produced by properties each year, through a combination of power, light and heating. That figure makes the environmental value of this new scheme all too apparent.
Leeds BS is also set to put money into looking at what every property is likely to produce in terms of carbon across the loan’s initial fixed-term repayment period.
Speaking to Mortgage Solutions, the Director of Products for Leeds BS, Matt Bartle, stated that the lender was leading the field in providing borrowers with this option, adding:
“We hope our offsetting of the home’s carbon footprint during the mortgage fixed term gives the buyer that time to consider next steps, such as saving up for improvements they need like a new boiler or replacement windows.”
Advisors entering the industry after CeMAP courses will know that borrowers are increasingly concerned about the environment.