We've improved affordability for the most energy efficient new build homes
Our latest green home initiative aims to help people get onto or move up the property ladder.
We now have access to more detailed data about projected energy savings for some new build homes, so we’ve improved our affordability assessment – making energy efficient new builds a more attractive option for homebuyers.
- The affordability improvement applies to purchases on new build homes where the Energy Performance Certificate (EPC) rating is A or B
- It allows homebuyers to borrow more for an energy efficient new build home than for a less energy efficient property
For example, a customer seeking a mortgage up to 95% LTV (loan to value) against a new build shared ownership property valued at £195,000 could borrow £185k versus £181k on a non-new build property.
“Through purchasing energy-efficient new build homes, customers are not only helping the environment but realising the benefit of lower fuel bills at a time when everyone is affected by the rising cost of living,” said Martese Carton, Leeds Building Society’s Director of Mortgage Distribution.
“Our improved affordability assessment for this type of property demonstrates the potential savings on energy bills where properties are A or B EPC rated, and what this can mean to a household’s outgoings, such as mortgage repayments.
“This is the first step for us in refining our affordability assessments in this way, as we seek to make greater use of this kind of very detailed data to bring home ownership within reach of more people while continuing to lend responsibly.”
This is another step in both our journey to support the net zero ambition, and our aim to put home ownership within reach of more people.
It’s important to note that brokers completing a Decision in Principle for a new build will already have this new affordability factored in. Our affordability calculator will be updated in due course.
We’ll continue to look at new and innovative ways to support the transition to net zero. The Society is looking at how best to support the need to retrofit as demand grows, along with any other new initiatives to drive the green agenda for a more sustainable future.
THIS INFORMATION IS FOR USE BY FCA AUTHORISED INTERMEDIARIES ONLY AND MUST NOT BE DISTRIBUTED TO POTENTIAL BORROWERS