Mortgage competition drives 'eco privilege'

Lenders are incentivising borrowers to make eco improvements to their homes with lower rates and cashback deals, while others offer an advance to fund works. But this approach could mean homeowners who cannot afford such changes instead pay higher mortgage costs. Not all borrowers will be able to take on more debt to increase their home's energy efficiency. Habito, a mortgage broker, has warned this reward system could lead to "eco privilege". Sarah Coles, of Hargreaves Lansdown, warned the policy favoured more affluent owners. She said: "This approach was always going to open up a gulf between those who can afford to make changes to improve energy efficiency and those who can't." 

The Daily Telegraph (11/12/2022)