In the budget report, released on March 21, 2007, the chancellor identified the important role lenders have in introducing ‘green finance’ products to help customers reduce their impact on the environment.
In response to this, HBOS, the UK’s largest mortgage lender, has announced that it plans to launch a green mortgage next year.
Banking group Yorkshire Building Society has also welcomed Mr Brown’s announcement and has stated that it will initially launch a pilot project for existing borrowers, which will make further advances available for energy-efficient enhancements for their homes, with more energy-efficient products to be added later this year.
The Co-operative Bank, which pioneered the concept of green mortgages seven years ago, said that it believes eco home loans will become the norm in the future. Its chief executive, David Anderson, has also revealed that the bank is currently working on new eco-friendly features to be built into its mortgage portfolio.
For every mortgage on its books, the Co-operative Bank makes a donation to an organization dedicated to combating climate change. This year, the amount donated since it launched green mortgages in 2000 will reach almost GBP1.5 million. In addition, for house purchases, customers will also receive a free home energy report with their valuation, which provides advice on making their home more energy-efficient.
