02 October 2022

Awareness of green mortgages slowly on the rise

By Paul Brett, Managing Director, Intermediaries at Landbay

Green mortgages in the buy-to-let space are relatively new. We were one of the first to introduce a green range in June 2021 and we’re seeing more brokers and landlords opting for them if they fit the criteria.

Just to recap, our green mortgages offer a discounted rate for properties with an EPC rating of A to C and can be used on new build as well as older properties. They are available on standard property, HMOs and MUFBs.

We want to encourage landlords to upgrade their properties if they can as it’s beneficial in the long term. Not only from an environmental perspective to help cut carbon emissions and keep household energy bills down but it will also be a government requirement in the future.

However, awareness of green mortgages among landlords is relatively low. Recent research we carried out found that 45% of landlords were aware of green mortgages, although this is an improvement from the start of the year when only 31% knew about them. Given the young age of green mortgages it is not surprising they are taking some time to register with the landlord community.

Our research also found that almost twice as many limited company landlords (54%) were aware of green mortgages compared to 25% of individual landlords.

Whether they are aware of green mortgages or not most landlords agreed they were a good idea with 86% saying a discounted mortgage rate would incentive them to upgrade property. This was an improvement from our survey in January where 74% were in favour.

Just over a quarter of landlords (27%) want to upgrade property as soon as possible, with

Almost three out of five landlords (59%) said they will wait until nearer 2025 before upgrading property, 27% want to upgrade as soon as possible but 14% said they don’t intend to make any changes.


Landlord knowledge of EPCs was a different story with much more awareness shown in our survey than green mortgages. All rental properties must have an EPC rating of A, B or C by 2025 for new tenancies and by 2028 for existing tenancies. Almost four in five (79%) of landlords surveyed knew about the proposed EPC changes, up from 70% at the start of this year.

It appears that some landlords view the up-and-coming EPC proposal changes as an investment opportunity. Our survey showed that 36% of landlords want to buy D rated property, or lower, in order to upgrade to at least a C rating. This was down slightly from 38% in January but still shows a decent appetite for retrofitting.

If you are unsure whether to recommend green mortgages to your clients, it’s really easy with our new broker portal. As you fill in the application form, you will be asked only relevant questions that lead you to the most suitable product. If your client is not eligible for a green mortgage, the system will explain why. Alternatively, if you had not considered a green mortgage and one is offered, it provides you with more options.

For adviser use only. Please note this content has been supplied by our lender partner and as such, is their responsibility. No party shall have any right of action against Legal & General in relation to the accuracy or completeness of the information in this article.