Green product choice in the buy-to-let (BTL) mortgage sector has risen to its highest level, research from Mortgages For Business has revealed.

According to the BTL mortgage broker’s findings, there were 353 green BTL mortgages on the market as of 1 March 2022 – compared to 4 on 1 March 2021

The number of products has increased for seven consecutive months, since August 2021 when there were only 118 green BTL mortgages on the market.

Mortgages For Business confirmed that 353 products available in the BTL sector is the highest ever recorded, with green BTL mortgages now making up 15% of all BTL products on the market.

“It demonstrates not only the recovery in the BTL sector but also the willingness of lenders to innovate,” commented Mortgages for Business managing director, Gavin Richardson.

“While there are more green products for individual owner – there are now 312 on the market – the most marked increase was in limited company lending, where the number of products has risen by more than fivefold since August last year.”

The research confirmed that limited company products saw even greater improvements in the extent of green choice on offer – rising to 244 deals this month. Green products also currently account for the largest ever proportion of the limited company BTL market, with green products now representing almost 19% of the total.

Richardson said that following the end of the stamp duty holiday, providers are now focusing on enticing landlords with greener products.

He added: “Upgrading existing housing stock with energy efficient improvements and making new-builds even more green can lower the sector’s carbon emissions. Given much of the UK’s ageing housing stock is very energy inefficient, making our homes a major source of greenhouse gas emissions.

“At 14% of the UK’s total emissions, housing has a greater carbon footprint than the farming industry. So there’s no question that improving energy efficiency is a critical part of tackling climate change.”

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