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Halifax runs small ‘green test’ trial for borrowers with energy efficient homes

  • 24/01/2022
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Halifax runs small ‘green test’ trial for borrowers with energy efficient homes
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.

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