The Way Ahead for the UK’s Green Mortgage Market

5 UK banks and building societies have entered the market with green mortgage products in the first four months of 2021. 11 banks have launched green mortgage products since the beginning of 2020 in the growing market for green homes and green mortgages. Green mortgages are expected see accelerating demand as The UK Committee on Climate Change estimates that £250bn of capital must be deployed in UK residential renovations, retrofits and refurbishments. While there are green mortgages available in the UK for homebuyers buying environmentally sustainable property, The UK Ministry of Housing, Communities and Local Government indicates that only 3% of UK home have an Energy Performance Certificate (‘EPC’) Rating of A or B. Further, EPCs don’t consider the full scope of environmental sustainability considerations which means not only is there latent demand for green mortgages there is also a need to scale the availability of environmentally sustainable homes through renovations, retrofits and refurbishment.