BTL market sees surge in green mortgage products

The total number of green products available in the BTL mortgage sector has now risen to 353, the highest ever recorded, revealed the latest research from Mortgages for Business.

According to the data, the number of products increased for seven consecutive months since August 2021, when there were only 118 green BTL mortgages on the market.  

Overall, green BTL mortgages now make up 15% of all BTL products on the market.

While there are more green products for individual owners, the most marked increase was in limited company lending, where the number of products has risen by more than fivefold since August last year.

Gavin Richardson, managing director at Mortgages for Business, said: “Choice totally eclipsed what was on offer this time last spring; it demonstrates not only the recovery in the BTL sector, but also the willingness of lenders to innovate.  

“The government has committed to making Britain carbon-neutral by 2050 — upgrading existing housing stock with energy-efficient improvements and making new-builds even more green can lower the sector’s carbon emissions.   

“Given much of the UK’s ageing housing stock is very energy inefficient, making our homes a major source of greenhouse gas emissions, . . . there’s no question that improving energy efficiency is a critical part of tackling climate change.  

“On the other hand, this criticality of meeting the climate change challenge doesn’t make it any easier for landlords — when we asked them, only 38% of landlords told us that they could afford to invest in making their BTLs more energy efficient. 

“Mortgage lenders have a huge part to play in helping landlords to fund their efforts — they have a responsibility to provide the facilities to allow landlords to finance this.”

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