The crucial role of brokers and green mortgages

In 2022, the UK imported energy worth £117bn, up from £48bn in 2019, and it’s estimated that cold homes cost the NHS £540m per year. A report by LSE predicted that the cost of climate change to the UK will increase from 1.1% GDP to 3.3% by 2050, and 7.4% by the end of the century. That’s an increase of £157bn per year!

To get to net zero and save on energy costs, our housing stock needs to improve. Approximately £250bn is needed to retrofit all older UK homes to at least an EPC rating of C (the UK average is currently a D). 

The market is starting to respond, with demand for solar PV increasing by 676% since 2020, and heat pumps by 160%. But homeowners won’t be able to foot the £250bn bill themselves, and will need help from lenders to fund the upgrades.

As well as offering green mortgages, brokers can be the trigger needed to complete retrofitting projects - by working with home improvement suppliers to incentivise retrofitting, giving brokers around £700 per property in commission and making it easier for homeowners to arrange the work needed.

Dealing with the fluctuations of the pandemic, political changes and interest rate hikes, mortgage brokers haven’t had the easier ride! However, brokers are now able to contribute to a greener world.