Danske Bank has made improvements to its affordability calculation for mortgage customers, including increased borrowing for Energy Performance Certificate (EPC) A to C rated properties.
The improvements include a reduced energy bill assumption when assessing the income and outgoings of customers purchasing a property with an EPC rating of A to C, enabling the bank to give an increased maximum lending offer to those buying more energy-efficient homes.
The changes also offer improved affordability for single applicants; for example, a single applicant earning £60,000 with no dependants looking to borrow on an A to C rated property could now borrow up to £290,000, compared with £266,164 previously.
Patrick Mullan (pictured), head of mortgage distribution at Danske Bank UK, said: “In response to valuable feedback from customers and the brokers that we work with, we’re delighted to now reflect lower energy costs in the affordability assessment for customers purchasing A to C rated properties – meaning we can lend more to those buying more energy-efficient homes.
“It ensures customers are offered mortgages that accurately reflect their income and outgoings, based on the home they choose.”
Chris Martin, head of sustainability at Danske Bank UK, added: “This is a really positive change that makes energy-efficient homes more accessible for customers, helps them reduce their impact on the environment and benefit from lower energy bills.”
