Mortgages  

What is meant by green mortgages and what is the FCA’s view?

  • Explain how brokers can help clients gain a better understanding of green finance
  • Identify risks around green mortgages
  • Explain the impact of consumer duty
CPD
Approx.30min

Under the new consumer duty, financial companies are required to ensure consumers receive communications they can understand, products and services that meet their needs and offer fair value, and get the customer support they need, when they need it.

Brokers will need to ensure they are accurately recording the client’s needs and circumstances beyond the current status quo.

Article continues after advert

Purchasing a home is a long-term investment, and as such brokers will need to ensure that conversations with homeowners are both educational and informative to help them understand the risks when owning a property and the future issues that could impact a mortgage application.

Brokers will also need to ensure that conversations go beyond the generic questioning. For example, when a client is planning to raise funds for home improvements, the conversation needs to go a step further to ensure they understand the type of work they plan to carry out, whether the materials used in the property are environmentally friendly and the impact of the work they plan to undertake on the EPC rating.

In addition, the broker needs to question whether the client has considered making sure some of the funds can be used to do retrospective work on the property in order to make it more sustainable moving forward.

Nicholas Mendes is mortgage technical manager at John Charcol

CPD
Approx.30min

Please answer the six multiple choice questions below in order to bank your CPD. Multiple attempts are available until all questions are correctly answered.

  1. What does David Geale say lenders are in danger of missing if they do not support homeowners more to enhance energy efficiency?

  2. True or false. Certain government proposals under consultation may mean that new tenancies could be banned on rental properties with an EPC rating of D or below, from next year.

  3. Which lender has a retrofit mortgage that rewards the homeowner by making effective improvements to the EPC rating of the home?

  4. Why does Nicholas Mendes say that lenders and valuers should work more closely?

  5. What impact will consumer duty have on brokers advising their clients on the purchase of a home?

  6. Which of of the following is the odd one out? What type of question does Nicholas Mendes say that brokers need to be asking clients when it comes to raising funds for home improvements?

Nearly There…

You have successfully answered all the questions correctly, well done!

You should now know…

  • Explain how brokers can help clients gain a better understanding of green finance
  • Identify risks around green mortgages
  • Explain the impact of consumer duty

I completed this CPD in

To bank your CPD please complete the form below.

Were the stated learning objectives met?

Why weren't they met?

What did you learn from undertaking this CPD exercise?

Why did you undertake this piece of learning?

Any comments about this article or FTAdviser's CPD in general?

Banked!

Congratulations, you have successfully completed and banked this piece of CPD

Already Banked!

You have already banked for this article.

To bank your CPD you must or

Register

One or more questions have been incorrectly answered,
 please review your answers and try again.

Please complete all the above text fields to bank your CPD.

More Mortgages CPDSee my completed CPDSee all CPD