Green mortgage market 'to stay steady'
The green mortgage market in the UK is likely to remain steady despite the economic downturn, according to one industry professional.
Darren Cook, head of mortgages at Moneyfacts, said that companies offering and choosing green products such as mortgages are doing so for corporate social responsibility, rather than solely financial reasons.
"There is a demand for these, there's an interest in the marketplace," he said. "But the lenders that are in [that market] are generally motivated by social responsibility; it's due to their company ethics that they supply these products."
He added that a business or a consumer choosing a mortgage or any other product might consider price first or ethics, where they will "morally take a green mortgage, because they believe that that's the right thing to do".
Mr Cook concluded that while these products, which can include tree planting to offset each mortgage or donations to carbon offsetting charities, will continue to be chosen for ethical reasons, demand may flatten.
"I don't see these products disappearing - but I'd be surprised if we suddenly saw a large amount of new lenders coming into the green mortgage area, at the moment," he said.
Article Date: 12 March 2008
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