Wednesday 20 October 2021 7:13 AM UTC
LONDON Oct 20: First-time buyers of poorly-insulated homes may struggle to get a mortgage under government proposals to make the housing stock greener, as mortgage lenders would have to disclose the energy performance of properties in their portfolio – and set themselves voluntary targets to improve the insulation of their houses.
Under new UK government proposals, mortgage companies would be incentivised in future to focus their lending on properties that have higher energy ratings, Sky News reported.
This is in the hope it encourages people to make their homes more energy efficient to make them easier to sell.
Currently only 40% of homes reach this higher standard. Eventually mortgage companies may be banned from lending to too many energy inefficient homes.
The plans – as reported by Sky News – have prompted an outcry, with mortgage companies saying this might trap some homeowners in negative equity if properties could not be cost-effectively improved.
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