A majority 67% of current or aspiring homeowners would consider a lower mortgage rate based on their property’s Energy Performance Certificate (EPC) rating, a new study has found.

Research from Foundation Home Loans found that around half (48%) of homeowners and prospective homeowners would consider improving the EPC rating of their property in order to access a better mortgage product, if it paid for itself in five years.

Foundation’s findings were based on interviews among 300 individuals regarding their housing aspirations and circumstances during August last year. The specialist lender stated that its questions focused on the energy efficiencies of existing housing stock, what it would take to get homeowners to make improvements, and whether green mortgages might have an appeal for those making such improvements or buying higher-rated properties.

According to the research, 5% of homeowners also said they would make green improvements to their property if it paid for itself in 15 years, while another 24% said they plan to improve their property’s energy performance regardless.

“There’s no doubting we’re going to be seeing a much greater government focus on the UK’s housing stock, how its energy efficiency ratings can be improved, and how that might help the UK meet its carbon emission targets,” commented Foundation commercial director, George Gee.

“To that end, there appears to be a far greater appreciation of energy efficiency within the home from individuals, and it’s positive to see two-thirds of all those polled saying a mortgage product with rates based on EPC ratings would be an appealing part of the overall product mix.

“At the same time, with such incentives in place, more people are likely to consider improving the energy efficiency of their properties and it’s therefore important we have product availability that can support those improvements, whether for owner-occupiers or landlords.”

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