According to research from Defaqto, there are 648 green mortgages available today, up from 550 in October.
The number of buy-to-let products has tripled from 85 in October to 292 now. This is being driven by potential legislation which state new tenancies might need to have an Energy Performance Certificate (EPC) of C or higher by 2025.
However, residential green mortgages has fallen by a quarter to 465 now. The firm did not cite a reason for this fall.
Green mortgages offer preferential terms to properties with better environmental standards, and are often offered on properties with an EPC rating between A and C. The products can be used on new builds but can also be eligible for properties if their EPC rating or energy efficiency is improved.
Katie Brain, consumer banking spokesperson at Defaqto, said: “With today being World Earth Day, it is encouraging to see that the green mortgage market is growing. Although this is predominantly in the buy-to-let sector, this still represents a sizeable number of homes that will be made more energy efficient as a result.”
She added that if consumers were considering a green mortgage they should discuss it with a mortgage adviser.
“Generally, newer homes will meet the criteria as they are built with modern regulations in mind, but older properties may need to be updated to ensure they are energy efficient. The cashback incentives typically offered with these ‘green’ mortgages can make it worthwhile as opposed to the standard mortgage range,” Brain said.
