A new “broker’s handbook” has been launched by the Green Finance Institute (GFI) to educate mortgage intermediaries about green home solutions.

The Institute hopes to inform intermediaries about technologies to help accelerate the decarbonisation of the UK’s homes.

Having grown rapidly in the past four years, the green mortgage sector has increased from three to over 50 products, although the GFI believes that many brokers are new to the opportunities that green mortgages provide. Its new handbook, the first of its kind for mortgage brokers, is a reference point that includes all the core information that brokers need to know to support customers on their net-zero journey.

The handbook has been developed with partners including the Association of Mortgage Intermediaries (AMI), Building Societies Association (BSA), Energy Savings Trust, Equity Release Council, the Intermediary Mortgage Lenders Association (IMLA), Legal & General Mortgage Club, the Mortgage Climate Action Group (MCAG) and UK Finance.

With the new resource, the GFI aims to help mortgage intermediaries identify the opportunities and risks, quality assurance standards, and benefits across the housing value chain, as well as the policy landscape for home energy efficiency.

Built environment director at the GFI, Emma Harvey-Smith, said: “Rising prices are causing widespread concerns for both domestic and commercial energy consumers. Mortgage Brokers are a key part of the puzzle when it comes to facilitating better insulated homes that cost less to heat, and support a net zero future.

“We’re delighted to be launching this handbook, developed with experts across the market, to provide the clarity needed for Brokers to now be armed with enough information to fully support customers and clients on this journey.”

With UK buildings being responsible for 23% of total greenhouse gas emissions, the GFI also suggested there is an opportunity for successful decarbonisation.

However, the Institute warned this is dependent on the built environment sector having confidence in green solutions and the relevant financial arrangements in place to fund these.

Reacting to the handbook’s launch, IMLA executive director, Kate Davies, said that mortgage brokers are currently faced with “a bewildering array of rules, regulations and proposals” regarding the energy efficiency of residential property, while AMI chief executive, Robert Sinclair, said that intermediaries will need to “evidence their professionalism” by guiding consumers through the “maze” of how to reduce their carbon footprint.

Head of mortgage and housing policy at the BSA, Paul Broadhead, said that building societies and credit unions have “a key role to play” and many are already providing finance to support the small number of consumers retrofitting their homes now.

The Equity Release Council’s head of risk, policy and compliance, Kelly Melville-Kelly, also said the handbook has come at an “important time” as homeowners look to understand net zero and the plans to reduce this significantly in the coming years.”

“The Brokers’ Handbook is the welcome result of industry-wide collaboration, led by the Green Finance Institute and will enable access to relevant information on potential energy savings available through financed home improvements, as well as some of the practical considerations to bear in mind,” added technical knowledge lead at the Energy Savings Trust, Brian Horne.

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