Danske Bank UK has amended its affordability calculation for mortgage customers to improve borrowing power.
This includes increased borrowing against properties with an EPC rating of between A and C.
The changes include a reduced energy bill assumption when calculating the income and outgoing of a borrower purchasing a home with an EPC rating of A to C. Danske Bank said this would enable it to offer larger loans to these borrowers.
Additionally, the lender has amended affordability for single applicants. For example, a person earning £60,000 with no dependents in need of a mortgage on a home with an EPC rating of between A and C could borrow up to £290,000 compared to £266,164 previously.
Patrick Mullan (pictured), head of mortgage distribution at Danske Bank UK, said: “In response to valuable feedback from customers and the brokers that we work with, we’re delighted to now reflect lower energy costs in the affordability assessment for customers purchasing A-C rated properties – meaning we can lend more to those buying more energy-efficient homes. It ensures customers are offered mortgages that accurately reflect their income and outgoings, based on the home they choose.”
Chris Martin, head of sustainability at Danske Bank UK, added: “This is a really positive change that makes energy-efficient homes more accessible for customers [and] helps them reduce their impact on the environment and benefit from lower energy bills.”
Danske Bank UK issues mortgages in Northern Ireland, and for properties with an EPC rating of between A and C, it is available in the East of England, South West, South East including London, the East and the West Midlands, through appointed representatives of the Mortgage Advice Bureau (MAB).
Shekina is the deputy editor at Mortgage Solutions and commercial editor at Mortgage Solutions and Specialist Lending Solutions. She has nearly eight years of experience in the B2B publishing market, having previously covered the hospitality, retail, pet, accounting and jewellery sectors.
Shekina has worked for Mortgage Solutions and Specialist Lending Solutions for almost five years. Here, she covers the market’s breaking news stories, engages with professionals in the sector, and oversees any commercially agreed content in partnership with mortgage-related companies.
This includes presenting webinars and hosting roundtable discussions on developing themes in the mortgage sector.
She is an NCTJ-trained journalist and was nominated for the Headline Money Awards Mortgage Journalist of the Year in 2021.
In her spare time, Shekina likes to read, travel, listen to music and socialise with friends.
She currently reports on current events in the mortgage market and liaises with financial clients to produce sponsored content.
Follow her on Twitter at @ShekinaMS
