It eyes climate change awareness and action in the mortgage sector
Three mortgage distributors – Legal & General, Sesame Bankhall Group, and SimplyBiz Mortgages – have worked together to form the Mortgage Climate Action Group.
The new group’s aim is to interpret new climate change legislation and engage with industry stakeholders to provide guidance and practical help for advisers.
The Mortgage Climate Action Group will act as a source of support for intermediaries, helping them to understand and address green issues when dealing with mortgage applications, and ensuring that advisers’ interests are represented among lenders, regulators, trade bodies and government institutions.
The three companies, which accounted for more than £169 billion worth of gross lending in 2021, have already begun working with lenders and the Association of Mortgage Intermediaries.
Read more: Green mortgages in the UK – why 2022 is a breakthrough year.
They are urging others across the industry to support the initiative in its aims to raise awareness of the green agenda, deliver education, and effect positive change in the mortgage sector.
The latest figures from the Department for Business, Energy and Industrial Strategy suggest that the residential sector accounts for nearly 21% of the country’s CO2 emissions, and, according to the Office for National Statistics, fewer than half the homes in England and Wales have the EPC rating of C or higher.
“Climate change action is clearly a bigger issue than housing and mortgages alone. However, new legislative changes will radically alter consumer options and choices in mortgage lending,” Michele Golunska, chief executive at Sesame Bankhall Group, said. “Mortgage advisers play a critical role in helping customers secure what is likely to be their largest ever purchase. We are focused on ensuring they are robustly supported to do so.”
Kevin Roberts, director at Legal & General Mortgage Club, agreed that climate change is a significant issue that can affect everyone, and that those in the mortgage market should also play their part in the mission to tackle global warming.
“We believe that collaboration will be key to addressing this hugely important issue. Our hope is that the industry will be inspired by our initiative, and we wholeheartedly welcome those who would like to join us in addressing this challenge,” Roberts said.
Richard Merrett, head of strategic development at SimplyBiz Mortgages, pointed out that it is crucial that they ensure that advisers have a voice and are supported in playing their part in raising awareness.
“We hope to create a positive culture around identifying the issues impacting consumers and giving clarity to advisers around what is entering their world, so they have greater opportunities to demonstrate expertise and advise on actions with their clients,” Merrett said.
