Leeds BS upgrades affordability calculator for larger green lending  

By: ameer@trustedteam.com

Leeds Building Society has upgraded its broker affordability calculator to allow as much as £11,000 of larger lending for new greener homes.  

The mutual says the software’s calculations now take into account the lower utility bills that generally come with newer, more energy-efficient homes.  

It adds the move will apply to homes built since 2020, and factors in the type of property a borrower wants a mortgage for.   

This means that the society will allow customers to borrow more than they could on an equivalent, less energy-efficient property.  

The change is aimed at reducing “the deposit hurdle many first-time buyers face”, says the firm.  

Leeds Building Society commercial development manager Richard Rothwell adds: “For example, a customer seeking a residential mortgage up to 90% loan to value against a new build standard property valued at £225,000 could borrow £210,000 versus £199,000 on a non-new build property.”  

“This latest innovation is part of our ongoing work to support our members in reducing their carbon footprint.   

“Housing is responsible for 16% of the UK’s total emissions, so it’s important as a lender that we play our part.”  

Green Finance Institute programme director Emma Harvey-Smith says: “To successfully decarbonise the UK’s housing stock we need to encourage more and more people to live in energy-efficient homes.   

“Incentives such as preferable mortgage rates for greener homes — combined with increasing consumer awareness — will be vital to boosting demand.”  

Last month, the Green Finance Institute launched a guide to update intermediaries about different green home retrofit solutions and technologies. 

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