We support the government’s affordable homeownership schemes, which are dominated by first-time buyers, who account for 83% of historic Help to Buy purchase (Help to Buy Wales is only for A or B rated homes), 76% of shared ownership sales, and the First Homes Scheme is only available for first-time buyers. We also use our cross-industry relationships to bring the housing market together, fostering better communication on sustainability between brokers, estate agents, surveyors, developers, lenders and government. The green revolution At Halifax, we already reward first-time buyers for choosing energy-efficient homes and are keen to develop even more helpful propositions. Last year we introduced EPC data capture on applications to give us a better understanding of the energy efficiency of our mortgage book to help us design green lending solutions. We invest in new technology, such as our Home Energy Savings Tool, to help brokers and your clients find out how they can improve their home’s energy efficiency, and what it will cost. We’ve also teamed up with Octopus Energy to help clients cut the cost of installing an air source heat pump, as well as supporting its ‘zero bills’ homes initiative, which offers a five-year tariff with no costs to those purchasing energy-efficient homes. We’ve developed a partnership with Effective Home, where our customers can access a trusted firm to install solar panels and battery packs. And, together with Crisis, we’re calling for one million new, affordable homes to be built for those on the lowest incomes and are actively involved in projects with Local Authorities to help deliver these homes. How brokers can help We know energy efficiency may not always be the biggest priority for first-time buyers. They really want to know how much they can borrow to get the home they have their heart set on and what it will cost. But that initial conversation is still a great opportunity to briefly run through the benefits of choosing a sustainable home, including: • Costs less to run and keep warm • Provides access to mortgages, which might be cheaper, have lower fees, or more generous lending criteria • The home is future proofed against the expense of extensive home efficiency improvements • Good for the planet • Available through affordable homeownership schemes (such as shared ownership) which could boost buying power. Of course, you need to be balanced and realistic because affordability may well trump eco-credentials for many. New properties carry a premium compared to older homes, which may not always be offset by any of the benefits above. We’ve also worked with developers on the Own New Rate Reducer Mortgage, where the developer incentive is rolled into a lower mortgage rate to help affordability. By increasing your knowledge about what’s available in this market and staying up to date with homeownership schemes and green mortgages, you can become the trusted authority for your clients. Helping your customer create a plan for their home, as well as their mortgage, will deepen relationships for the long term. Tackling the climate crisis is a huge challenge, but one we can and must rise to. Because, by creating sustainable and affordable homes, we can support more people onto the property ladder, build communities and help people benefit from all the advantages homeownership brings. For the use of mortgage intermediaries and other professionals only. The information contained in this article is the property of Lloyds Banking Group plc and may not be reused or publicised without our prior permission. The information provided is intended to be for information only and is not intended to be relied upon. This information is correct as of January 2024 and is relevant to Halifax products and services only. If you do not have professional experience, you should not rely on the information contained in this communication. If you are a professional and you reproduce any part of the information contained in this communication, to be used with or to advise private clients, you must ensure it conforms to the Financial Conduct Authority’s advising and selling rules. Halifax is a division of Bank of Scotland plc. Registered in Scotland No. SC327000. Registered Office: The Mound, Edinburgh EH1 1YZ. Bank of Scotland plc is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under registration number 169628. 07 AUTUMN MORTGAGE NEWSLETTER
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