Key points:
- Awareness of green mortgages is falling among homebuyers.
- Nearly two-thirds of advisers say their clients are not familiar with green mortgages.
- The cost-of-living crisis and other challenges have shifted advisers’ focus away from going green.
- More education and awareness is needed about the benefits of green mortgages.
- The mortgage industry should offer more competitive interest rates and incentives for green mortgage products.
The Mortgage Advice Bureau has found that awareness of green mortgages is declining among homebuyers. According to the research, nearly two-thirds of advisers state that their clients have not heard of green mortgages and don’t understand them. This is a slight increase from the previous year, suggesting that the availability and benefits of green mortgages are not being effectively communicated to potential buyers.
One of the main reasons for this decline in awareness is that advisers are facing numerous challenges in the current market, such as the cost-of-living crisis. These challenges have made it difficult for advisers to focus on promoting green mortgages and educating clients about their benefits. Retrofitting costs and information overload are also cited as challenges.
Despite the lack of discussion on green mortgages, advisers recognize the need for more public awareness and education about these products. They believe that the mortgage industry should offer more competitive interest rates and incentives for green mortgage products. They also call for a wider range of green mortgage products tailored to different needs and budgets.
Currently, the majority of advisers only offer green mortgages when they know a property meets the criteria for this type of mortgage. However, despite the lack of awareness, 45% of advisers believe that there has been noticeable progress in the green mortgage space compared to a year ago. This suggests that there is potential for growth in the market if more efforts are made to promote and develop green mortgage products.
In conclusion, the Mortgage Advice Bureau highlights the importance of continuing conversations about green mortgages and informing customers about their eligibility for these products. They also emphasize the need for industry innovation to make green mortgages more attractive, such as offering higher borrowing potential, lower interest rates, and other benefits. As the market settles and finds a new normal, the Mortgage Advice Bureau believes that green mortgage innovation should be a priority for the industry.
