Good News for Homeowners
There was general approval by the Council of Mortgage(CML) lenders in response to the recent announcement made by housing minister Yvette Cooper. CML head of policy Jackie Bennett said:
“We are happy to discuss with the government its ideas for a framework in which mortgage funding could contribute further to making homes more energy efficient. ”
“It is clearly a fundamental requirement that any successful measures must be attractive to borrowers, as well as being able to work within the confines of what mortgage finance is capable of delivering. As the minister acknowledges, there is also a role here for other stakeholders, including energy companies, local authorities and landlords in the social and private sectors.”
The Council of Mortgage Lenders’ members include banks, building societies and other lenders who undertake 98% of all residential mortgage lending in the UK. currently there are 11.6 million mortgages in the UK, with a total net worth over £1 trillion.
This is good news for homeowners who are looking for a second mortgage. While some lenders are already taking the high price of utilities into consideration, the proposal will force all lenders to consider utilities. This will make it easier for the homeowner and the lender to determine the ‘real’ level of mortgage a consumer can afford.
The government proposal is still sketchy, but it will draw a lot of interest from homeowners who hope to make their homes energy efficient, maybe with the help of utility companies, and protect themselves from future spikes in utility bills. Even if the government has not finalized a plan, lenders will start making plans to implement the new program.