You are here: Home - News -

European pilot launched to test impact of energy efficiency on mortgage repayment risk

by:
  • 14/06/2018
  • 0
European pilot launched to test impact of energy efficiency on mortgage repayment risk
An energy efficient mortgage pilot backed by 37 European banks has been launched.

 

Under the trial, lenders will test a European framework for energy efficient mortgages, ahead of an expected product roll-out in the future.

During the two-year pilot scheme, lender data will be used to analyse the impact of energy efficiency on credit risk.

The pilot and framework are part of the Energy Efficient Mortgages Initiative, which hopes to deliver cheaper lending for borrowers with energy efficient buildings or who have made energy saving renovations.

The banks involved in the scheme are a wide range of lenders across the continent and include BNP Paribas in the UK.

The initiative is also supported by the UK Green Building Council.

It comes after the Welsh government recently launched legislation to give Help to Buy borrowers in Wales larger equity loan sizes when they buy a home with smaller energy bills.

Luca Bertalot, Energy Efficient Mortgages Initiative coordinator, said: “After many months of preparation and extensive consultation of relevant actors, the pilot scheme will provide real business responses to the challenges of designing a market framework for energy efficiency financing and supporting the EU’s transition to a more sustainable future.

“Much effort has been dedicated to this initiative by and across a number of sectors, and we are therefore excited that the major European lenders from a wide range of jurisdictions have recognised the importance of the initiative and have committed to road-testing it.”

There are 0 Comment(s)

Comments are closed.

You may also be interested in

Business Skills

In this section, we offer short ‘how to’ guides on harder to crack areas of business. From social media, to regulation or niche product areas, we cover it all.

Profiles

Our journalists interview key industry entrepreneurs, strategists and commentators for day-to-day market insight and a strategic view of where the industry is heading. We offer lessons for success and explore the opportunities for your business

Success in Practice

Here, we share case studies fleshing out best practice to help you decide what could work for your business. Take a look at how others approached complex tasks like launching a new mortgage lender, advising on a new product area or deciding to specialise in another. Learn from others mistakes and triumphs.

Marketwatch

Each week, we ask top mortgage and property commentators with a unique perspective to examine a key news headline, market move or regulatory or political issue.

Poll

Vote in our weekly poll here. It’s your chance to tell us what you think and be heard on the top news stories of the week. Review our archive to find out what your industry really thinks and all our coverage of the results.

Top Comments

Be part of the conversation on Mortgage Solutions. We want to hear from you. We have a tool called Disqus to tell us which stories get the most comments each week. Every Friday, the team picks the most thoughtful or opinionated contributions from our readers to enjoy again. Don’t forget to share your favourite stories from the site on social media to keep the conversation going.
  • RT @Official_AMI: We raised an amazing £3,536.40 for @MytonHospices last night so a huge thank you to everyone who donated. This is the hig…
Read previous post:
2241541-house-building
Leasehold house owners trapped in unsellable homes – Which?

Many new-build leasehold homeowners in England have been trapped paying ground rent fees that rise at an alarming rate rendering...

Close