Landbay has called for the building sector to commit to an eco-led future, with the Financial Conduct Authority (FCA) and government working towards greener ambitions.
Last month, the specialist buy-to-let lender launched its first green mortgage range, which have lower rates than their non-green counterparts, depending on the property’s energy rating.
Landbay said the City regulator is aligning its policy with the government’s commitment to a greener future and will increase its emphasis on greening the industry by coaxing lenders to ‘do their bit’ in marketing green mortgages.
The lender said the government wants as many rental properties as possible to upgrade their Energy Performance Certificate (EPC) by 2030 and its own green mortgage range will lead to more landlords to consider adding energy-efficient properties to their portfolio.
“Meanwhile, the building sector is going to have to commit not only to building more energy-efficient homes, without which the long term effectiveness of an eco-led future is damaged before it starts,” Landbay said in a blog post on its website.
“Green issues are dominating the news agenda as Covid begins to fade and interest among consumers is growing and lenders are responding to the growing interest.
“Green mortgages provide landlords with the means to meet tomorrow’s challenges by helping to improve existing property portfolios and being more selective when investing in energy-efficient housing for new purchases.
“Advisers have a major role to play in educating landlords that green mortgages will not only help to improve the quality of tomorrow’s rental housing stock but will also make a positive impact on their future profitability.”
Earlier this month, Landbay launched two new buy-to-let mortgage products for houses in multiple occupation for first-time landlords and cut rates on its core range of buy-to-let mortgages by up to 0.24 per cent.