The role of the Adviser Awareness Workstream in green home finance – Doy

With the UK housing market increasingly focused on energy efficiency and sustainability, mortgage advisers play a pivotal role in helping customers navigate these new and emerging opportunities.

Building knowledge, building confidence

One of the core objectives of the Adviser Awareness Workstream is to build awareness and understanding of green financing options and keep advisers up to date with the latest legislation, innovation and challenges.

We understand that many customers may feel overwhelmed by the scope of green financing and retrofitting options. Our workstream is dedicated to making green mortgage concepts accessible and practical for everyday use, empowering advisers to better support their customers.

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Addressing key adviser concerns

We’ve identified several key concerns that mortgage advisers commonly face when it comes to advising customers on green mortgages. These include:

• Knowledge and understanding

Many advisers may not feel equipped to advise customers on the energy-efficiency aspects of homeownership. We aim to provide straightforward resources to bridge this knowledge gap.

• Perceived complexity

Our workstream is focused on demystifying the process and showing that these products are becoming more mainstream and easier to navigate.

• Customer hesitancy

Customers may not be aware of the financial benefits or incentives tied to green mortgages. Advisers are in the best position to help them understand how going green can actually save them money in the long run through reduced energy bills and more favourable mortgage terms.

Strengthening adviser-customer relationships

By offering green mortgage options, advisers can set themselves apart from competitors and demonstrate a genuine commitment to supporting customers in making more sustainable decisions.

There is an increase in customers looking at becoming more environmentally conscious, who are eager to learn about ways to make their homes more energy efficient. By providing guidance for customers toward green mortgage products, advisers can foster deeper relationships, show that they are aligned with customers’ values, and build long-term loyalty.

In addition to residential green mortgages, there are growing changes affecting buy-to-let (BTL) properties, the upcoming changes in the Minimum Energy Efficiency Standards (MEES) and the proposed new Energy Performance Certificate (EPC) metrics will significantly impact both landlords and prospective buyers.

For mortgage advisers, understanding the potential implications of these changes is crucial. Landlords may increasingly seek advice on green financing options or loans to improve the energy efficiency of their properties.

Stephanie Charman, chief executive of the AMI, said: “While all the working groups within this initiative are important, the Adviser Awareness Group stands out due to the crucial role advice plays in supporting consumers’ understanding of green issues. We believe advisers are ideally positioned to offer guidance and signpost consumers to the necessary resources and tools, enabling them to make informed decisions.

“With the proposed buy-to-let EPC and MEES regulations, landlords will likely seek advice and potential funding options for energy-efficient upgrades. Advisers in this sector should maintain cautious optimism. While AMI will continue to advocate against any unintended consequences, these changes will also present new opportunities for advisers.”

We invite all mortgage advisers to join us on this journey. Your involvement in the Green Mortgage Advice Initiative can help drive the change that is necessary to make sustainable financing accessible to all.