Policy
Response
The Green Deal and Energy Company Obligation Consultation
Response by the BSA|
Contact: Colette Best Date: 18 Jan 2012 |
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Building societies and mutual lenders are supportive of efforts to make the existing stock of UK homes more efficient. We do however have concerns about selling incentives within the green deal. There is the potential for conflicts of interest to arise where the company advising a consumer on which energy efficiency improvements should be made is the same company that will benefit financially from their installation. We believe that to address this, assessment should be separate from the installation company.
There no consideration given in the consultation to the possibility that homeowners may wish to fund part of the green deal measures through a further advance on their mortgage. There may be a role for lenders to play in advance funds for energy efficiency improvements.
For a number of the green deal measures to be installed consent will be required by the borrower from mortgage lender. The mortgage lender will need to be aware if any of the more significant measures (eg solar panels) are to be installed as it may affect the value of the property and the lender’s security.
Consideration must be given to the status of the green deal payments if a lender has to take a property into possession and who the disclosure requirements fall upon if the lender is selling a epossessed property. We believe that if a mortgagee is in possession, green deal payments should be suspended until the property has been sold and a new owner is found.
The full response can be found at the link below.
The BSA response to the Green Deal and Energy Company Obligation Consultation
