Research reveals that 58% of mortgage brokers believe environmental concerns provide marketing opportunities for lenders despite only 19% being aware of ‘green’ mortgages currently offered by lenders.
Only a handful of providers have so far developed mortgages that target customers concerned about the environment, including the Co-operative Bank, Norwich & Peterborough and the Ecology building society.
According to the 100 mortgage brokers surveyed by Penrose PR, this is because the lenders have been slow to address the marketing and product opportunities available in this field.
This is following the implications of the Stern Report and the impending Energy Performance Certificates that will be implemented in June.
Claire Burston, partner and head of consumer finance at Penrose, says: Our research shows that the market for these types of green products is clearly in its infancy but highlights that they could be a growth area.
“While some of the brokers we surveyed were skeptical, believing borrowers are much more driven by cost than saving the planet, the majority believes we will see more lenders look closely at this area in 2007 as an important niche market.
Brokers also believe the government will have to work with the lenders to offer some kind of incentive.
“The pre-Budget report addressed this to some extent by offering incentives for houses to be more environmentally-friendly, but brokers want to see this expanded.