In a speech delivered earlier today, David Geale, director of retail banking at the Financial Conduct Authority (FCA), emphasised the importance of green mortgages and brokers in helping decarbonise the UK’s housing sector.
With residential homes accounting for around a fifth of the nation’s greenhouse gas emissions, green mortgages can significantly aid in reducing emissions and lowering energy bills for homeowners.
Speaking at The London Institute of Banking and Finance Mortgage Conference Geale highlighted that mortgage lenders and brokers have a crucial role to play in the transition towards energy-efficient homes.
He said: “Lenders risk missing their decarbonisation targets if they don’t evolve their support for homeowners to enhance energy efficiency.” This may lead to an increase in green mortgage products and innovation in the market.
Discussing the role of brokers, Geale said:”Brokers have a key role to play in helping borrowers navigate a complex and nuanced landscape in terms of green home finance.”
He emphasised that brokers should ensure borrowers make appropriate decisions based on their needs and preferences.
As the green mortgage sector continues to grow, the FCA encourages ongoing innovation from lenders and the empowerment of brokers to support consumers.
Geale concluded: “We want to see ongoing innovation from lenders, with compelling incentives that will influence consumer decisions as they seek to improve the energy efficiency of their homes.”
