Iress and Twenty7Tec plan green mortgage search filter launches by year-end

Iress and Twenty7Tec plan green mortgage search filter launches by year-end

 

Iress said that it was aiming to introduce a green mortgage filter by the end of year, while Twenty7Tec said that it should be ready to rollout in the fourth quarter.

Mortgage Brain said that in the latest version of its online system, Sourcing Brain, released in the summer brokers could filter for green mortgages in its advanced filters section.

Green mortgages have begun to be more widely offered, with several lenders bringing out the products over the past year.

According to Moneyfacts data, as of the start of October there were 157 green branded residential mortgage products in the UK from lenders including Natwest, Virgin Money, Danske Bank, Royal Bank of Scotland and Leeds Building Society.

Residential green incentive products, which offer rewards for improving energy efficiency and so on, numbered 350 products with major lenders including Nationwide and Halifax.

Buy-to-let green branded products came to 95 with lenders including Landbay, Kensington, Keystone Property Finance and Foundation Home Loans.

Some brokers said that the lack of a green mortgage filter in sourcing systems could make it more challenging to find and recommend such products to clients in the first instance, which could impact their take-up.

 

Drivers for introduction

 

Iress and Twenty7Tec said that the introduction of the filter would make it easier to identify products and was partially in response to lenders releasing more green mortgage products into the market.

Nathan Reilly, head of lender relationships at Twenty7Tec, said that by using the filter, brokers would be able to easily identify available green mortgage products to benefit customers. He said brokers could offer financial savings or incentivise customers to make “necessary improvements” to properties during the advice process.

He added that lenders participating in the green mortgage space would be more “visible” and “potentially have a competitive advantage over those that aren’t”.

He said: “It is encouraging to see the industry and particularly lenders responding to a global challenge, and product availability is much higher than 12 months ago, but there’s a long way to go to improve existing properties that need to be modernised to be more environmentally friendly. Currently a lot of the green mortgage benefit sits with those buying new builds, which is only a fraction of mortgage stock.”

An Iress spokesperson said that it had decided to introduce the filter based on client conversation, who said in turn that their clients would find “helpful”.

The spokesperson added: “We have seen that lenders are putting out more and more products for this incentive, the filter will allow brokers to either not have these products in the search results if they are only for green mortgages, or filter so that they just see these products.”

A spokesperson from Mortgage Brain said that it had been working with lenders and industry bodies to ensure it was in a position to ensure brokers and lenders have a platform that gives “accurate and relevant information that allows everyone to make the right recommendations for the best possible customer outcomes”.

They added: “For us, ensuring that we have the relevant solutions to enable this is critical and we will continue to evolve our proposition to reflect changes in our market constantly, we are sure that there will be more we can do to further enhance how green mortgages are researched and recommended across all forms of research.”