Tuesday, 13 June 2017

Green Housing Can Help People Afford Mortgages


One of the biggest questions for construction companies in North Wales and home builders in North Wales is whether or not that people are capable of affording their builds. Of course, all of the features, building, and great design – as well as the Government’s own Help to Buy scheme doesn’t help when it comes to ongoing costs of living and the customer’s inability to afford it. Of course, it doesn’t need saying that as a country, we’ve all been tightening our belts since 2007, and time is taking quite a toll.

However, Green Building and a look toward Sustainable Building looks like it may be able to make a move-in far more affordable for very many people. Ask anyone that is currently applying for a mortgage or anyone which has held one for very many years - mortgage affordability is a very big part of calculating the cost of a mortgage and a very real reason why banks and building societies turn down prospective customers.

In 2011, in a conference speech which highlighted the potential of properly assessing energy costs in mortgage lending identified fuel costs as one of the “Big Two” unavoidable costs of living next to council tax payments. Based on these findings, Constructing Excellence Wales funded the BRE to later confirm this – and set out plans to combat it.

Mortgage lenders as a result must be more responsible by using legally required Energy Performance Certificates to model the efficiency and performance of a home and to factor it into the Decision in Principle – allowing lenders to feel more assured that their decision is a good one, and homeowners to feel assured that they can actually afford the ongoing commitment of a mortgage, even if their circumstances change somewhat.


For construction companies in North Wales and also house builders, it allows them to focus upon Green Building and to also build with that in mind, for the oncoming changes to the housebuilding industry in North Wales and beyond.  

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