Halifax is running a small “green test” trial with select builders to examine whether struggling borrowers with energy efficient homes can access improved affordability.
A report in The Mail on Sunday said the green test could mean struggling borrowers with energy-efficient properties could access larger mortgages.
It explained that the test will mean the lender will examine whether borrowers with more energy-efficient homes will have increased disposable income as their energy bills were lower. Evidence of extra income could also help a borrower qualify for a larger mortgage.
According to a Halifax spokesperson, the test will review applications for new-build homes with an Energy Performance Certificate (EPC) rating of A or B for borrowers that “narrowly fail” a standard affordability assessment, using lower assumed fuel costs due to increased energy efficiency.
Green mortgages and energy efficiency have become increasingly important on lenders’ agenda over the past year or so.
Last year in October, the government was reported to be exploring plans to work with mortgage lenders to support homeowners to improve the energy performance of properties.
This included banks improving average EPC rating of the homes on the lending portfolio to at least band C by 2030.
Lenders have also been introducing more green mortgage products, with around 21 lenders providing some kind of green or energy=efficient product.
Anna is currently the deputy editor for Mortgage Solutions and editor for Specialist Lending Solutions. She has worked as a journalist since 2019, having secured her Gold Standard NCTJ diploma from News Associates in a fast-track six-month course.
She started her career as a report at specialist publication The Insurance Insider covering a wide range of areas before joining Mortgage Solutions and Specialist Lending Solutions in 2021.
In her role, she helps put together and structure the news agenda for the day and writes up press releases, reports, interviews, analyses and exclusives across both titles. She also commissions blogs for Specialist Lending Solutions and hosts online masterclasses and in-person events across the business.
She has been shortlisted for three journalism awards, which include BIBA Journalist and Media Awards Scoop of Year Award in 2020, Headline Money Mortgage Journalist of the Year Award (B2B) in 2022 and 2023.
Prior to being a journalist, Anna worked in ecommerce across Snow + Rock, Cycle Surgery and Runners Need websites, and before that worked at specialist financial PR firm Rostrum.
In her spare time, Anna enjoys reading, seeing live music, and cooking for friends and family. When she gets a chance, she also enjoys hiking, skiing and indoor rock climbing.
