If you’re in a vehicle going the speed of light, what is the environmental impact when you turn on the headlights? I don’t pretend to know the answer, but some bright green spark powered by six wind turbines might.
Is it me or is the world becoming obsessed with the world? Houses are no longer somewhere to live. Cars are no longer vehicles to drive. They are commodities defined by the volume of carbon emissions they emit.
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I’ve read that when it comes to carbon footprints, the UK contributes 2 per cent of the world’s carbon, which is a yeti-sized print when we ponder how small our island actually is – cause for alarm, or dare I say it, opportunity. For example, Tony Blair is just as likely to spout about saving the planet as destroying it – let’s face it, he has a vested interest in greenhouses as he is close to retirement.
In a commercial world, put the word ‘green’ in front and this has the same impact on price as ‘baby’ and ‘wedding’, particularly when it comes to potential stealth taxes. Take the Energy Performance Certificates the government is so keen on having that it actually forgot to put a plan in place to make them happen. It also lured us all into making its employees’ lives easier by segregating our rubbish for them only to then start to charge in some parts of the country if we fail to fit the right block in the hole.
Our industry typifies the slow but increasing uptake of the ‘green’ fashion. In 1981, the Ecology Building Society was formed with the purpose of supplying mortgages for those who have a renovation, conversion or new build that will, in theory, benefit the environment. How many of you have used it?
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Norwich & Peterborough has commendably been building a forest for its ‘green mortgage customers by planting eight trees on their behalf in each of the first five years. Regrettably the interest rate has failed to stand up in its own right and I believe a wiser move would be to use the tree planting as a retention solution. Picture a blackmail letter coming through the door with a redemption request statement: ‘Don’t renege on your commitment to the environment, stick with us and our quest to make your house carbon neutral’.
The latest and largest contributor is the Nationwide and UCB Home Loans. The latter has been issuing a consumer information booklet to new mortgage customers on energy saving since February.
I personally believe the edges between ‘green’ issues and ‘good causes’ are blurred and justifiably a mortgage that contributes towards direct life-saving issues such as cancer research or supporting a third world country may be more preferable for some.
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Therefore I think we are better served by ensuring new build houses are environmentally friendly and to a degree self-sufficient through solar power, than packaging a mortgage product to appear green. For example, think of the impact double glazing has already had on this country. And, of course, by education my slogan would be: ‘Keep Earth Clean, It’s Not Uranus’.
Mainstream
Alliance & Leicester has a 4.99 per cent two-year fixed rate to 95 per cent loan-to-value (LTV) with £999 completion fee. Britannia has a deal at 5.49 per cent fixed for five years to 95 per cent LTV with a £399 completion fee.
BM Solutions has made some key changes to its Mortgage Plus product, including allowing the 5 per cent deposit to be taken from the unsecured part of the loan.
Northern Rock has increased its procuration fees on its standard and Together products.
Buy-to-let
CHL Mortgages has launched a solution for professional landlords with medium-sized properties that are let to multiple families, including those with locks on doors.
Alliance & Leicester now lends in Northern Ireland.
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NatWest has tiered its rental income into three bandings depending on household income. For example, if the applicants salary is £75,000 per annum then a rental cover factor of 100 per cent is applied this is based on Base Rate plus 0.75 per cent.
Infinity Mortgages now restricts builder deposits to one property only. It significantly reduced its rental calculation to 75 per cent of payrate for selected products via certain distributors.
Advantage is piloting its first buy-to-let products.
BM Solutions has reduced its rental cover to Base Rate plus 0.50 per cent on selected products.
Adverse
LIBOR resets have typically increased 0.28 per cent to 5.81 per cent
UCB Home Loans has extended the free valuation promotion to its adverse range.
The Mortgage Works is now accepting ex-local authority flats up to five storeys up to 75 per cent LTV.
Chelsea has launched 95 per cent LTV near-prime products from 5.94 per cent and also an unlimited CCJ product to 90 per cent LTV.
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