Three of the UK’s largest mortgage distributors have announced a new collaboration, the Mortgage Climate Action Group.

Legal & General, Sesame Bankhall Group and SimplyBiz Mortgages said they are aiming to interpret new climate change legislation and engage with industry stakeholders to provide guidance and practical help for advisers.

The Mortgage Climate Action Group will act as a source of support for intermediaries, helping them to understand and address green issues when dealing with mortgage applications, and ensuring that advisers’ interests are represented among lenders, regulators, trade bodies and government institutions.

Figures from the Department for Business, Energy and Industrial Strategy show that the residential sector accounts for around 21% of the country’s carbon dioxide emissions, while according to the Office for National Statistics, fewer than half of homes in England and Wales have an Energy Performance Certificate (EPC) rating of C or higher.

The three companies, which accounted for more than £169bn worth of gross lending in 2021, have already begun working with lenders and the Association of Mortgage Intermediaries (AMI). They are urging others across the industry to support the initiative in its aims to raise awareness of the green agenda, deliver education and effect positive change in the mortgage sector.

“Climate change action is clearly a bigger issue than housing and mortgages alone, however new legislative changes will radically alter consumer options and choices in mortgage lending,” Sesame Bankhall Group CEO, Michele Golunska, commented. “Mortgage advisers play a critical role in helping customers secure what is likely to be their largest ever purchase. We are focused on ensuring they are robustly supported to do so.”

Legal & General Mortgage Club director, Kevin Roberts, said: “We believe that collaboration will be key to addressing this hugely important issue. We have already been working closely with lenders and will soon be able to deliver educational content, available as structured CPD pieces, centred on supporting the advice journey.”

SimplyBiz Mortgages head of strategic development, Richard Merrett, added: “This is about ensuring that advisers have a voice and are supported in playing their part in raising awareness. We hope to create a positive culture around identifying the issues impacting consumers and giving clarity to advisers around what is entering their world, so they have greater opportunities to demonstrate expertise and advise on actions with their clients.”

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