Leeds improves affordability assessment for energy-efficient new builds

The Society is now able to use more detailed data about projected fuel bill savings for new build homes with an A or B EPC rating, enabling customers to borrow more than on an equivalent, less energy efficient property.

Martese Carton, director of mortgage distribution at Leeds, said: “Through purchasing energy-efficient new build homes, customers are not only helping the environment but realising the benefit of lower fuel bills at a time when everyone is affected by the rising cost of living.

“Our improved affordability assessment for this type of property demonstrates the potential savings on energy bills where properties are A or B EPC rated, and what this can mean to a household’s outgoings, such as mortgage repayments.

“This is the first step for us in refining our affordability assessments in this way, as we seek to make greater use of this kind of very detailed data to bring home ownership within reach of more people while continuing to lend responsibly.”

Adrian MacDiarmid, head of mortgages at Barratt Homes, added: “New homes are built to high energy efficient standards so it makes sense that the savings on bills are reflected in affordability. We put great store in this with 99% of the homes we build either A or B rated.

“There is an increasingly compelling case for lenders to offer support in this way to the growing number of customers who want to buy an energy efficient home.”