You are here: Home - Mortgages - Buy To Let - News -

Green buy-to-let mortgage choice at record high

Written by: Anna Sagar
The number of green buy-to-let (BTL) mortgage deals on the market has increased from just four in March last year to a record 353 now.

Green mortgage deals provide incentives for borrowers with either a lower interest rate or an increased loan amount where they buy a green property (typically a new build), or renovate an existing property to make it greener.

The UK’s largest lenders, such as Barclays and Nationwide, have launched a wave of climate-change products amid criticism over the industry’s slow response to global warming.

But, according to specialist BTL broker Mortgages for Business, green BTL mortgages now make up 15% of products on the market.

It has recorded seven months of consecutive increases since August 2021, when there were 118 green mortgage deals on the market.

With a total of 353 green mortgages available in the buy-to-let mortgage sector, this is the highest ever recorded, with landlord borrowers now having more choice than ever before.

The broker added that limited companies also had improved green mortgage choices, rising to 244 deals this month, which is a fivefold increase on last year. Green limited company products made up 19% of all limited company products.

Gavin Richardson, managing director of Mortgages for Business, said that the growth in green BTL mortgage deals showed a “recovery in the BTL sector but also the willingness of lenders to innovate”.

He added that lenders were now focusing on greener products for landlords, partly due to the government committing to making Britain carbon neutral by 2050 and the consequent need to upgrade housing stock. Further, upcoming legislation around BTL properties and required EPC ratings are contributing to the increased choice for borrowers.

Richardson explained: “Given much of the UK’s ageing housing stock is very energy inefficient, making our homes a major source of greenhouse gas emissions. At 14% of the UK’s total emissions, housing has a greater carbon footprint than the farming industry, so there’s no question that improving energy efficiency is a critical part of tackling climate change.”

He added that the average bill for landlords to improve their properties’ EPC ratings ranged between £6,000 and £15,000. But its survey revealed just 38% of landlords could afford to invest in making their properties more energy efficient.

“Mortgage lenders have a huge part to play in helping landlords to fund their efforts – they have a responsibility to provide the facilities to allow landlords to fund this,” Richardson said.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Your right to a refund if travel is affected by train strikes

There have been a wave of train strikes in the past six months, and for anyone travelling today Friday 3 Febru...

Could you save money with a social broadband tariff?

Two-thirds of low-income households are unaware they could be saving on broadband, according to Uswitch.

How to help others and donate to food banks this winter

This winter is expected to be the most challenging yet for the food bank network as soaring costs push more pe...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week