The Ecology Building Society has said that the popularity of conventional fixed-rate mortgages is waning as homeowners increasingly looking for green deals.

According to the environmentally-focused building society, the ongoing credit crunch has resulted in many mortgage products being taken off the market or having their rates significantly increased.

This has created an opening for so-called ethical mortgages, managing director Jenny Irwin argued, with more and more Brits relying on the energy efficiency of their home to secure them a discounted rate.

"Fixed rates appear to be losing their appeal," Ms Irwin commented. "Based on our recent performance I would say the market for truly green mortgages is growing."

She added that her firm's gross mortgage lending figures doubled last year and that by using savers' investments to fund mortgage lending, it has also been left relatively unscathed by the credit crunch.

Two new green mortgages were recently launched by Halifax, both of which offer financial incentives for the uptake of energy efficient technologies such as double glazing insulation.

© Adfero Ltd

Author:  Joanne McCabe

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