Mortgage brokers are seeing rising numbers of consumers seeking green mortgages, according to research by Leeds Building Society.
The Society asked members of its broker panel for their views on green products and whether they were noticing any changes in consumer demand or attitudes for this sector in the build up to COP26.
Four in five advisers said inquiries for green mortgages over the past three months has increased compared with 12 months earlier, with almost three in five (57%) seeing a significant increase.
Almost all the brokers surveyed (93%) expect demand for green mortgages to increase over the coming months, with half expecting demand to increase significantly.
Matt Bartle (pictured), director of products at Leeds Building Society, said: “All the publicity around COP26 clearly has made more consumers think about climate change and what they can do as individuals to reduce their environmental impact.
“Our research with intermediaries supports our view this is an issue the public is engaged with and a market which brokers can expect to continue to grow.
“What we’re starting to see is a groundswell of opinion from more people who are recognising that change needs to happen and seeking products to help them reach their goals.”
Of those brokers who took part in the poll, 43% said their clients are more likely to choose a green mortgage over a lower cost standard mortgage, highlighting interest in green mortgage products, even at the expense of cheaper standard options.
However, one in six brokers said more needs to be done to increase awareness of green mortgages and energy efficient living.
“Seeking the views of brokers is important to us as a lender because it helps us to respond to the needs of their clients, our borrowers.
“As well as being the right thing to do for the planet, ensuring homes are as energy efficient as possible also means lower bills for owners in the longer term and we’re looking at more ways to share our knowledge and support our members on their way to reducing their environmental impact,” added Bartle.
Earlier this year, Leeds Building Society introduced green mortgage deals to benefit those living in the most energy-efficient properties as part of its efforts to link its products with positive environmental impact.
Last month, it became the first UK lender to add a carbon offset benefit on all of 95% LTV (loan-to-value) fixed rate mortgages for purchase, and will invest in offsetting** the forecast environmental impact of each home during the initial fixed term of the mortgage.
The Society has already received enough applications for its carbon offset products launched last month, to offset approximately 3,500 tonnes of carbon – the equivalent of around 12,000,000 car miles (petrol) or 25 trips to the moon and back.
