Going green: What are we offering and why?
May 2023
The UK is committed to reaching net zero carbon emissions by 2050, and with a fifth of these emissions coming from our homes, creating more energy efficient housing stock is critical to achieving this goal. Not only do they help protect our planet but they also provide long-term cost savings and a healthier environment for people to live in.
While housebuilders are focused on developing and building more efficient properties, the mortgage market is stepping forward to play its part in reaching net zero by enabling clients to make greener choices. Brokers have a key role to play in this journey by keeping borrowers in the loop with the latest green initiatives and products. At Coventry for intermediaries, we are committed to the green agenda and recognise our role in ensuring brokers are well placed to advise their clients on implementing energy-efficiency improvements to their home.
Our Knowledge Centre offers brokers a comprehensive guide on how to navigate the green market and details the support we have in place for brokers to help their clients go green. The FCA has commented on the importance of lenders supporting retrofitting activity, and we believe in offering green solutions that reward clients for continuous work towards a more climate friendly home.
Our Green Further Advance for example, provides clients with a lower rate when they borrow more for energy efficiency improvements. Through the scheme, clients will benefit from a lower interest rate if they use at least half of their borrowing (with a maximum spend of £25,000) on improvements designed to make their home more energy efficient. A wide range of energy efficiency improvements can qualify for the scheme, including:
- Insulation (such as solid wall insulation, cavity wall insulation and sold floor insulation)
- Windows and doors (such as energy efficient glazing and insulated doors)
- Energy generation (for example, installing solar PV panels, wind turbines or storage batteries)
- Heating (such as a biomass boiler, air source heat pump, solar hot water system or a gas condensing boiler).
Our Green Further Advance is for Buy to Let and residential clients who are existing customers of Coventry Building Society and Godiva Mortgages Limited. Clients must also meet current lending criteria and be eligible to borrow more with a further advance product. They must also have had their mortgage for at least six months and have made six consecutive payments (the scheme isn’t available for Offset clients).
As we continue to expand our green offering at Coventry for intermediaries, we are focused on working together with brokers.
That’s why we’ve been working with Energy Saving Trust to ensure brokers are well equipped to highlight to clients how to make their property more efficient and how they can save more money on their energy bills through our Home Energy Efficiency (HEE) Tool. By using the HEE Tool, brokers can create an action plan that shows clients their EPC rating, information on CO2 emissions, estimated energy costs and suggested improvements based on the desired budget.
This action plan can be tailored to a client’s preference, allowing them to select which is most important to them - lowering their energy bill or reducing the environmental impact of their home. That is not to say that these are always mutually exclusive, but there are some examples that will reduce a client’s emissions but won’t necessarily save them money at the outset (and vice versa). For example, using green electricity is much better than gas when it comes to emissions, but it is also more expensive, so allowing the client to determine their own preferences in this way is vital.
These are just some of the steps we are taking as a mortgage lender. By encouraging clients to make even just a few changes to improve the energy efficiency of their home not only can we help reduce their energy bills, but their carbon emissions too. Even small changes, scaled up, can make a big difference.
For more information, why not visit our Green Further Advance page?
*Please note that the Green Together Reward is no longer available for new applications, however existing applications can be claimed until 26th May 2024.
