Cheap mortgages for energy efficient homes could come to an end

Cheap mortgages could soon be harder to come by for non energy-efficient properties, borrowers have been warned.

According to the latest English Housing Survey released by the Department of Communities and Local Government, the energy efficiency levels of UK homes have improved markedly over the past decade.

At present, around one in three homes now has cavity wall insulation, while 71 per cent have loft insulation fitted and 13 per cent boast double-glazing.

Now, with the government keen to further cut back on energy consumption and carbon emissions from within the residential property sector, the National Home Improvement Council has suggested that the days of cheap mortgages for inefficient properties could soon come to an end.

Director Andrew Leech stated that the next step towards this goal could be the introduction of restrictions on mortgages unless a buyer is planning on increasing a home's energy efficiency by a further 50 per cent.

"I think that will happen," he said.

"The seller will find it difficult to sell their property because the buyer won't be able to get a mortgage on the place because it is not up to a certain energy efficiency standard."

Earlier this month, the government announced that 43 per cent of its boiler scrappage scheme vouchers have already been snapped up since the start of the year.

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2010-02-26 11:10:13 © Moneyextra.com