New mortgage products are always of interest ad Enable. Recently it it interesting to note that Foundation Home Loans has brought out a new green mortgage for landlords that offers a discount that progresses proportionally to a property’s energy efficiency.
The mortgage product is called the ‘Green ABC’ and is available at up to 75% LTV on a two-year variable discount and charges a 2% product fee. The details say that for a building with an energy efficiency rating of C, the discount of 2.60% gives an initial rate of 2.49% and for a property with an energy efficiency rating B, a discount of 2.80% provides an initial rate of 2.29%. An A rating gives a discount of 3.10%, meaning an initial rate of 1.99%.
“The better the EPC rating, the bigger the discount, and our aim is to help meet the needs of landlords who want a more energy-efficient property portfolio.” Says Foundation commercial director George Gee. “Not only do these products have excellent rates, but there are no ERCs which will allow landlords a larger degree of flexibility, plus will also allow them to improve the energy efficiencies of those properties further and benefit from the remortgage reward fixed rate options that are available.”
Enable’s IFAs in Bishops Stortford were interested to see that a recent YouGov poll in June found that environmental problems ranked as one of the country’s top-three concerns. Some 30% of people believe this is one of the three biggest problems facing the country, a figure that rises to 40% among the 18-to-24 age group.
Consumer awareness of green mortgages however has been low. Often the environmental debate is framed around polluting cars, international travel or heavy industry, but a major cause of pollution lies much closer to home. Residential properties are one of the biggest generators of pollution in Britain. Enable’s IFAS can help you investigate the green credentials of your properties.
Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage