Over half of lenders say they are now offering green mortgage products compared to just a third this time last year, said Mortgage Advice Bureau – that’s a 76% year-on-year increase.

And almost all (98%) of those asked said they will offer them in the future if they don’t already, the broker found.

One in 10 lenders actually predicted that green mortgages will, in time, completely replace all existing products on offer.

Joint effort required

When it comes to how more environmentally friendly homes will be built, lenders see this as a joint challenge, with 95% saying it’s up to both builders and lenders to provide more energy-efficient homes.

Many have also become more aware of the role they have to play to provide energy-efficient housing stock, with only 5% of lenders saying it is only the responsibility of builders, down from 11% a year ago.

The vast majority (95%) also said that green mortgages will be ‘a permanent part of their product range’. Currently, a fifth of lenders (20%) have over five different green mortgage products on offer.

Ben Thompson, deputy CEO of Mortgage Advice Bureau, said: “The climate issue is one we must act on, and every lender can play their part.

“With that in mind, it is really encouraging to see the uptick in lenders offering green mortgages, and letting people know about them is key. With COP27 in Egypt having just finished, the climate is once again front and centre, and we will always help lenders and intermediaries to push green mortgages.”