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More banks join EU-backed pilot scheme for green mortgages

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Deutsche Hypothekenbank in Germany and the Ecology Building Society in the UK are the latest to join a group of 37 pioneering banks offering an energy efficiency mortgage pilot scheme to homeowners, in what supporters say could be “a game-changer” for the multi-billion mortgage industry.

 

By joining the scheme, the two banks will adopt standards which are currently being tested as part of an EU-backed pilot programme involving banks and financial institutions representing a combined lending power of over €3 trillion, equal to around 20% of the EU’s GDP.

The pilot scheme aims at trialling new criteria for energy efficiency mortgages for homebuyers. The proposed standards will provide lenders with the critical information they need to understand how energy use and efficiency improvements impact on mortgage risks.

Supporters of the initiative aim to demonstrate how easy it is to apply the proposed standards, saying it could transform the multi-billion-euro mortgage business by making green loans cheaper.

read more on Euractiv website.