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Rising energy bills drives demand for green mortgages – Legal & General

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  • 30/01/2023
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Rising energy bills drives demand for green mortgages – Legal & General
Rising energy bills has increased the number of homeowners looking for more efficient homes, criteria search data suggested.

Green mortgages were among the most popular mortgage criteria searches in December 2022, according to Legal & General (L&G), as deals that consider the home’s energy performance certificate (ECP) climbed by more than a fifth.

Growing demand for eco-friendly homes was also reflected in separate research by L&G, which showed sustainable features are as important as the size of a property for home hunters.

December also saw a 30 per cent jump in searches for interest-only mortgages, as borrowers appeared to look for solutions to maximise their borrowing potential, according to L&G’s SmartrFit platform.

Joint borrower sole proprietor mortgages were also the second most searched criteria in December, as borrowers seek help from family and friends to buy.

The most criteria searches were for applicants with a visa, underlining the belief that UK housing is a safe haven in economic uncertainty.

 

Customer needs changing

Jodie White, head of mortgage products and transformation, Legal & General Technology, said: “2022 certainly wasn’t without its challenges, but it is encouraging to see that, as customers’ needs changed in response to the surging cost of living and rising energy bills, the UK’s mortgage market was able to meet this demand with clear advice and innovative products.

“Affordability has naturally come under pressure in recent months, but our data shows that advisers are stepping up to meet this challenge and helping their customers find alternative solutions. This responsiveness is a positive sign for the health of our mortgage market.

“Whether it’s navigating interest-only products, or exploring the plethora of green mortgages appearing on the market, advisers play a vital role in helping borrowers review their circumstances and establish which will be the most appropriate option as part of their advice.

“Taking on high volumes of complex work is difficult, but new technology is here to help deal with the administrative burden. As we start a new and busy year for the market, brokers can lean on the various digital tools at their disposal so they can focus on what they do best – giving high-quality advice.”

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