The Green Finance Institute has announced the launch of a green mortgage hub.

The hub is an online resource collating publicly available information on UK green mortgages into an interactive table, alongside a library of articles, report, tools and pilots related to the green mortgage market.

The UK Climate Change Committee has estimated that £250bn needs to be invested in UK home upgrades by 2050, and the Green Finance Institute suggested that that private finance actors – such as banks, building societies and institutional investors – have the opportunity to play a significant role in the coming years.

More than 10 mortgage lenders in the UK have launched green mortgage products since the beginning of 2021 alone, however the Institute estimates this is a relatively small proportion of the UK’s £1.58trn mortgage market. Despite this, research by the Intermediary Mortgage Lenders Association indictes that 77% of lenders are planning to launch green mortgages that are cheaper or priced the same as a typical product.

According to the Institute, the new hub aims to inform and encourage lenders considering the green mortgage market, as well as being a trusted source of information for mortgage intermediaries, policymakers and NGOs focused on decarbonising the built environment.

Green Finance Institute programme director, Emma Harvey, commented: “The finance sector is starting to embrace the opportunities that green products offer to support their customers in the decarbonisation of their homes, and providing information, tools and case studies can help to encourage innovation.

“The Green Mortgage Hub will provide a snapshot of UK green home financing, acting as a resource for lenders to continue developing innovative green home finance solutions.”

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