Mortgage Advice Bureau (MAB) polled 49 lenders and found that 59 per cent intended green or net zero mortgages to be a permanent part of their offering.
Some 12 per cent said green mortgages would become the norm and eventually replace the standard mortgage product.
Most lenders did not believe that green mortgages would overtake the market, as 84 per cent said they would remain as a product segment.
Little development in green mortgages
Although more lenders are offering a green product, 61 per cent of lenders said the market had not changed in the past year, while a quarter were unsure if there had been any progress. Just 14 per cent said there had been developments in the green mortgage space.
When it comes to product development, 39 per cent of lenders think expanding ranges to suit diverse borrower needs was the main priority while 16 per cent said addressing the affordability challenges of standard mortgages was the main priority.
Some 14 per cent said managing interest rate changes was more important.
Ben Thompson, deputy CEO of Mortgage Advice Bureau, said: “Climate change is an issue we all must act on, and the uptick in green mortgage products on the market is encouraging news. It’s important that this shift stays front of mind for both the industry and property owners, as energy bills and what we can do on an individual level to reduce our climate impact stays firmly in the spotlight.
“While the country’s net zero targets may seem far away, the reality is that we’re hurtling towards them at a startling rate. At a policy and industry level, we have a responsibility to push the housing market to a more sustainable future – one that is as energy efficient as possible. Green mortgage products – and the wider promotion of these – is one part of the puzzle, and now we must ensure these are being put to prospective buyers.”
