The handbook aims to guide brokers and homebuyers through improving home energy efficiency
Non-government and non-profit organisation Green Finance Institute (GFI) has launched the Broker’s Handbook, a guide to educate and inform mortgage intermediaries about different green home retrofit solutions and technologies to help accelerate the decarbonisation of homes in the UK.
The handbook provides a practical guide for brokers to understand opportunities in the mortgage sector through improving home energy efficiency. It has been developed with partners, including the Association of Mortgage Intermediaries, Building Societies Association, Energy Savings Trust, Equity Release Council, the Intermediary Mortgage Lenders Association, L&G Mortgage Club, the Mortgage Climate Action Group, and UK Finance.
In addition, the handbook has been accredited as part of the London Institute of Banking & Finance’s CPD program.
According to GFI, the green mortgage sector has grown rapidly in the past four years, increasing from three to over 50 products. It added, however, that many brokers are new to the opportunities that green mortgages provide.
The handbook, the first of its kind for mortgage brokers, is a reference point that includes all the core information that brokers need to know to support customers on their net zero journey.
GFI noted that mortgage intermediaries have wide-ranging, long-standing and trusted relationships with homebuyers, and therefore have an important role to play in the decarbonisation of UK homes. This resource will help them identify the opportunities and risks, quality assurance standards, and benefits across the housing value chain, as well as the policy landscape for home energy efficiency.
With UK buildings being responsible for 23% of total greenhouse gas emissions, the opportunity for successful decarbonisation is dependent on the built environment sector having confidence in green solutions and the relevant financial arrangements in place to fund these, the organisation said.
The Chris Skidmore Net Zero Review included targets for all homes sold in the UK to have at least an energy performance certificate rating of ‘C’ by 2033 which, if implemented, would introduce a new timeline for improving the energy efficiency of the UK’s inefficient housing stock. Finance is essential in making this change and the Climate Change Committee, the government’s independent advisory body on climate change, estimates a total investment need of £360 billion by 2050.
“Rising prices are causing widespread concerns for both domestic and commercial energy consumers,” Emma Harvey-Smith, built environment director at Green Finance Institute, said. “Mortgage brokers are a key part of the puzzle when it comes to facilitating better insulated homes that cost less to heat and support a net zero future.
“We’re delighted to be launching this handbook, developed with experts across the market, to provide the clarity needed for brokers to now be armed with enough information to fully support customers and clients on this journey.”
Robert Sinclair, chief executive at the Association of Mortgage Intermediaries, thanked stakeholders and the GFI in working with them to deliver the learning tool.
“At AMI with our greenmortgageadvice.uk website, we are focused on bringing together a single source of truth on what is and will remain a complex area,” Sinclair said. “Intermediaries will need to evidence their professionalism by helping guide consumers through the maze of how to reduce their carbon footprint.”
Paul Broadhead, head of mortgage and housing policy at the Building Societies Association, added that decarbonising UK housing to meet net zero presents an enormous challenge that will require action from every part of the housing market.
“Building societies and credit unions have a key role to play and many are already providing finance to support the small number of consumers retrofitting their homes now,” he said. “For the government’s legal commitment to be met, the number of retrofits will need to rise dramatically.
“Mortgage brokers are a key part of the solution to this retrofit challenge, given their dominance in providing advice to the majority of consumers taking out mortgages today. We strongly welcome the GFI’s Handbook as a vital tool which will provide critical information to help borrowers to navigate the ever-growing energy improvement and green financing options available to them.”
Kelly Melville-Kelly, head of risk, policy and compliance at the Equity Release Council, said they have valued the opportunity to work with GFI on the handbook, along with many of their fellow trade associations.
“This comes at such an important time as everyone, especially homeowners who look to understand net zero and the plans to reduce this significantly in the coming years,” she noted. “The handbook works together with the lenders’ handbook to educate and inform mortgage intermediaries involved in all aspect of lending including equity release.”
Kate Davies, executive director at the Intermediary Mortgage Lenders Association, congratulated GFI for producing the handbook.
“Mortgage brokers are currently faced with a bewildering array of rules, regulations and proposals regarding the energy efficiency of residential property,” she said. “We congratulate the GFI for producing this most welcome handbook, which will help brokers navigate their way through the jungle – and enable them to advise their clients with confidence and clarity.”
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