Dudley Building Society Launches Green Mortgage

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Dudley Building Society is the latest lender to launch a range of energy efficient mortgage products.

Products include a two-year re-mortgage of 3.79% with repayments of up to 80% for homeowners.

And for rented landlords – a three-year re-mortgage with a fixed rate of 3.79% with repayment up to 70%.

While Dudley guarantees homeowners at least an EPC B rating, he guarantees homeowners an EPC C rating.

The specialized lender said it wants to help homeowners and landlords looking to improve their property’s energy efficiency rating.

Along with products for new customers, Dudley also introduced a two-year product with a 2.10% discount on energy efficiency.

Sam Ward, Dudley’s chief commercial officer, said the products were the lender’s “initial response” to the government’s commitment to cut emissions and “boost domestic demand” over the past eighteen months.

“If our products help people by making it easier to fund these improvements, we all benefit in the long run,” Ward said.

The government’s green targets include a legal commitment to achieving net zero carbon emissions by 2050, as part of Prime Minister Boris Johnson’s “ten-point plan” that promises to attract £ 12 billion in public investment.

In October, the government began consultations that outline proposals to upgrade as many homes as possible to EPC Band C by 2030.

Until the end of March, he offered homeowners and homeowners a Green Homes Grant voucher to cover the cost of installing energy efficient home improvements.

In October, the Intermediary Mortgage Lenders Association (Imla) published a study that found consumer awareness of green mortgages was low, but that the market was “ready” for growth

The trade association found that 43 percent of consumers have never heard of a green mortgage.

But Imla also found that 57% of lenders were planning to launch a green mortgage offer after the pandemic.

“A number of lenders have recently introduced green mortgages, which typically reward clients with a cash return or a lower interest rate if their property has a high EPC rating,” Luke Spellman, a Coventry-based mortgage broker, told FTAdviser.

“Encouraging homeowners and homeowners can only be a positive thing as it encourages them to do their best to renovate their property.”

Spellman added that the inclusion of such products in the portfolios of lenders will attract prospective buyers with the prospect of saving on their bills.

ruby.hinchliffe@ft.com

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