Budget gives mortgage lenders green light

22 March 2007
Green mortgages are two a penny this spring, Co-operative Bank has noted, staking its claim to be the originator of the environmentally friendly secured loan.

Following a budget speech in which Gordon Brown emphasised the assistance lenders could give to 'greening' the UK by offering house buyers mortgages which incentivise them to reduce their impact on the environment, HBOS and Abbey rapidly issued announcements of forthcoming green products.

The reactive nature of the moves were suggested by the fact that few details were given - HBOS head of products Peter Jackson hailed the coming of a green mortgage "next year" while Abbey loans executive, Paul Morrish, promised "full details in due course".

But any moves to reverse the degradation of the environment must be welcomed, Co-operative's chief executive David Anderson stressed.

"Households are one of the biggest energy users and so anything we can do to help make homes more energy efficient can only help reduce the UK's carbon footprint," he emphasised, pointing to his own bank's 'extended' green mortgage proposition.

"Green mortgages will be the most common form of home loan in the future," Mr Anderson predicted.

Co-operative Bank introduced the first green mortgage seven years ago.

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