View more on these topics

Green mortgages are too expensive

From using unleaded petrol to recycling paper, we are constantly reminded to be aware of the damage we are doing to our planet. But how many people can say they think green when considering their mortgage?

The answer, it seems, from this week&#39s cover story starting on page 42 is not very many. But whether this is the result of lenders and brokers ignoring an untapped market or simply lack of demand from the public is unclear.

A number of providers offer ethical mortgages including The Co-Operative Bank, the Ecology and Norwich and Peterborough. But part of the problem is that the rates tend to be less competitive than mainstream mortgages.

Though many people like to be seen as being environmentally conscious, this doesn&#39t extend to situations where the cost is higher, as ethical mortgages can often be. The public may be willing to shell out a few extra pennies for an organic egg but they don&#39t seem to want to pay more every month for the next 25 years to live in a green home.

And some brokers feel green mortgages have too much of a novelty feel to them – that they are not taken seriously and there is a &#39gimmick factor&#39 attached to being labelled a green lender.

Green mortgages are regarded by some as a niche product that doesn&#39t have much of a future, despite more responsible attitudes to the environment.

On a subject closer to most peoples&#39 hearts in the industry is the issue that has reached boiling point in the run-up to Mortgage Day – do packagers have to be regulated or not? Despite the Financial Services Authority issuing more clarification packagers remain uncertain on what route to take. Many are saying they plan to make a precautionary application to the FSA and leave it to the regulator to tell them whether this is required.

But whatever you plan to do, do it now as time is fast running out.


Opus range for Mortgage Promotions members

The firm is launching a number of products into the market including both prime and non-conforming deals funded by lenders including GMAC-RFC, Mortgages PLC, Kensington and West Bromwich. Members of Mortgage Promotions will be able to share their views on products and criteria which should enable Opus to continue to provide appropriate products. Technology will […]

ARLA slams buy-to-let abuses

The ARLA panel of lenders, Birmingham Midshires, GMAC Residential Funding, NatWest Mortgage Services, Paragon Mortgages and The Mortgage Business, represent some 40% of all buy-to-let mortgage lending. ARLA represents 1,500 lettings and residential management offices. Speaking in London, Robert Jordan, president of ARLA, said that true buy-to-let is an example of private enterprise fulfilling a […]

Here&#39s hoping the FSA won&#39t change stance on packagers

Having read the contents of the letter from Dr Eleanor Linton of the Financial Services Authority to the Council of Mortgage Lenders&#39 senior policy adviser Kate Main in the last issue of Mortgage Strategy, I have come to the following conclusion. As long as a packager has no direct contact with customers and only provides […]

MD Nationwide gets full FSA authorisation

The grant of permission under Part IV of the Financial Services and Markets Act 2000 means that MD Nationwide will be an authorised organisation from Mortgage Day, October 31. The notification follows MD Nationwide&#39s receipt of its minded to approve letter early last month. Dave Symondson, managing director of MD Nationwide, says: “We are relieved that […]

Why we all need to back the housing underdog

The UK loves an underdog. There is something irresistible about the story of the little guy standing up to the established players and leaving them with a bloody nose, whether it is Henry Cooper putting Muhammad Ali on the mat or the Wallabies trouncing the Kiwis in rugby. At the Conservative Party conference, LendInvest championed […]


News and expert analysis straight to your inbox

Sign up