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Mortgage lenders are taking heed of environmental concerns with 26 "green mortgages" now available to borrowers. The deals promise lower mortgage rates to those whose homes have good energy efficiency ratings - typically a band A or B on the property's energy performance certificate. Until18 months ago there were no mortgages that offered discount rates for reducing a property's carbon footprint. Now, deals are from as little as 1.13% fixed over two years from NatWest for those with 40% equity in their home. That compares to the cheapest ordinary two-year fixed rate at the same loan-to-value, which is 1.24% t available from First Direct. Some lenders provide extra incentives, too, with Foundation Home Loans offering borrowers £750 cashback. Landlords are also eligible for the cheaper deals if they can show their properties have improved energy efficiency. Jeni Browne, director of Mortgages For Business, a broker specialising in buy-to-let, says: "At 14% of the UK's total emissions, housing has a greater carbon footprint than the farming industry and nearly as much as our shops and offices. We need a mass retrofitting programme on existing, inefficient properties in the private rented sector." |