At a glance 

Government energy efficiency initiatives can help reduce householdenergy running costs. ShapeFor governments, the overarching aim of the initiatives is to help the UK reduce its carbon emissions and to achieve target commitments on energy production from renewable sources. 

Energy efficiency initiatives can involve mortgage lenders in several ways, particularly if the customer wants to install expensive energy efficiency technology which can affect the structure and appearance of the property. If the installed technology is also owned by other people or businesses, then lenders? interests could also be affected. 

Our position 

In principle, lenders welcome measures that might reduce energy running costs on mortgaged properties, but they might want to know when customers have entered into agreements or finance plans under government schemes, as well as what equipment has been installed and agreements or rights over it, so that they can assess any potential positive or negative impacts on their exposure to risk, on customer affordability or on property valuation. 

Lenders will make their own commercial decisions in response to energy efficiency schemes, and these may vary. 

The market will determine any impact schemes might have on property values. 

Why this is important for lenders 

In principle, lenders support initiatives which help reduce energy running costs on mortgaged properties. Reduced running costs can ease pressure on household budgets and help customers with mortgage affordability.