Mortgage borrowers who are eco-friendly are being targeted for the new ethical mortgage service from IFA Ethical Investment Co-operative (EIC).
The ethical mortgage is a joint venture with EIC, building consultancy Thirdwave and a panel of three building societies, Skipton, Yorkshire and Scottish.
EIC will identify mortgages for the client that are offered by the three building societies which can be repaid through investing in ethical funds, such as unit trusts, pension plans, Isas, Oeics or investment trusts, from companies that fulfill certain criteria.
These include environmental issues, such as if the company invests in solar power or has a record of pollution. Other criteria include community involvement and equal opportunities.
Thirdwave will then provide an additional survey on the property being bought, to identify ways that the building can be improved in terms of water or power efficiency. The survey comes at no additional cost and further advances on the mortgage, at discounted rates, are available to make identified improvements should the borrower wish.
The ethical mortgage market makes up a very small area of the whole at the moment, which is growing slowly. This service should appeal to the more environmentally and morally aware as well as people who wish to identify ways of improving their property through cost effective measures, thus moving into the broader market.