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Halifax embeds EPC data, extends green mortgage cashback and tweaks affordability

  • 09/02/2023
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Halifax embeds EPC data, extends green mortgage cashback and tweaks affordability
Halifax will introduce Energy Performance Certificate (EPC) capture for new homebuyer loans and remortgages, expand its green mortgage cashback to remortgage customers and enhance affordability support for customers and brokers.

The EPC capture process will come into force from 13 February. The process links directly to the government database, so the EPC rating is recorded at the point of application.

The lender said that the process for brokers is simple and creates opportunity for them to discuss energy efficiency with customers earlier in the homebuying journey.

The lender said that this would bring “greater insight” and allow it to “recognise and reward improved energy efficiency with more products, services and policies that support borrowers to make greener home loan decision”.

This, along with Halifax Intermediaries’ Home Energy Savings tool, will help brokers support clients in futureproofing their homes with energy efficiency and encourage discussions around funding.


Green mortgage cashback extended

Halifax will extend its green mortgage range so remortgage customers are eligible for cashback on more energy efficient properties.

For those looking to buy or remortgage from 13 February they can get £250 cashback for an EPC-rated A or B property.

It is also available through direct mortgage channels for Halifax and Lloyds Bank.


Halifax adapting affordability model for ‘financially resilient customers’

Following broker feedback for a more “tailored approach” to affordability, Halifax said that it would make changes to its affordability model for “specific criteria” to reward more “financially resilient customers”.

The lender said that the “targeted enhancements” ensured responsible lending and upped the maximum loan amount for those borrowing at 75 per cent loan to value (LTV) on a term of five years or more.

It also applies to those remortgaging to the lender without taking on additional borrowing.

Halifax said that this could mean maximum lending could rise by up to nine per cent or £25,000 per average application.

Amanda Bryden (pictured), head of Halifax Intermediaries and Scottish Widows Bank, said: “The government’s goal of achieving net zero by 2050 is getting closer, and a significant part of achieving that is reducing the carbon emissions from the UK’s housing stock.

“We want to help people who make energy efficient buying and improvement choices; expanding our green mortgage range helps do that. Collecting EPC information for each home we lend on will help us develop more and better products, policies, and practices in the future, to help borrowers make greener decisions and play their part in cutting the UK’s carbon emissions.”

She continued: “We are listening; and we understand that, in some cases, brokers would like us to take a more flexible approach to affordability. Our new enhanced affordability model addresses this and continues to ensure we only lend responsibly to those we believe can afford it both now, and in the future.”

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