Mortgage Overview
A mortgage is the biggest loan most people will take out in their lifetime. But just how is this loan funded?
Who else does your mortgage provider do business with? Might they also lend to big corporations involved in areas you don't approve of? Do they lend responsibly to their customers and offer assistance to those who fall into financial difficulty? Do they offer incentives to environmentally-sound projects?
If you're thinking of buying property or your existing mortgage is up for renewal, this section will help you find a green and ethical provider.
Find out about your current or prospective provider
What are the green and ethical options?
Find out about your current or prospective provider
Use the mortgage search to find out more about your current or prospective mortgage provider's green and ethical credentials. Key areas considered are responsibility toward customers, financial exclusion, equal opportunities, environment and also whether they have an ethical lending policy or guidelines in place.
Responsible lending
The importance of responsible lending cannot be overemphasized. The recent global economic downturn is often attributed to the 'sub prime crisis'. This refers to the granting of loans to people who are considered to be in higher risk categories - those more likely to default or who have a poor credit history, for example.
This type of lending is not problematic in itself - credit unions and community development finance institutions regularly lend to sub prime candidates.
Instead, irresponsible lending to customers in the sub prime category is the problem. In the build up to the crunch some financial institutions were lending 100% mortgages (and in some cases more) to people who would not be able to make their repayments in the long term.
Key questions to ask: Does your bank have responsible lending policies that ensure that its products are targeted in an appropriate manner? And does it provide advice or debt management services to customers who fall into financial difficulty?
What are the green and ethical options?
- Co-operative Bank: has a well-recognised ethical policy in place that governs all its lending decisions and products including mortgages. It also offers a specific Green Mortgage and re-mortgage product. Additionally it offers a reduced-rate loan to mortgage customers wishing to purchase and install energy efficient home technologies from an approved list.
- Ecology Building Society: has an 'ecological' lending policy which applies across all lending practices. It offers a number of green mortgage options.
- Norwich & Peterborough Building Society: offers a Green mortgage which plants 40 trees per mortgage and available for new homes with a Standard Assessment Procedure (SAP) rating of 100 or higher or to those looking to make their home more energy efficient. It also offers a Brown mortgage which includes a free energy survey and advice on making property energy efficient.
Your next steps
Check out our Next Steps Guide - Mortgages for suggestions on how to find the right green and ethical mortgage provider for you as well as the questions you should be asking your current or prospective provider.
Mortgage Search
Mortgage Provider
Bradford & Bingley
Green/Ethical Products
None
Ethical Lending or Insurance
The bank does not lend commercially.
Responsible Lending
Bradford & Bingley no longer offers either mortgage or personal loan products.
Financial Exclusion
Bradford & Bingley does not provide any specific products or services for the financially excluded, however its savings accounts are technically open to all.
It has supported credit unions in the Aire Valley, West Yorkshire, both financially and with the provision of staff.
The bank also makes some access provisions, including:
- Induction loops in all branches
- Improved wheelchair access and power assisted doors across the branch network
- Interpretation services for deaf customers on request
- Typetalk
- Literature provided in formats including Braille, audio and large print
- In some local communities with a high concentration of non-native English speakers, the bank has recruited staff who can speak relevant languages
The bank is not involved in any microfinance projects nor does it provide preferential lending in deprived communities.
Environment
Bradford & Bingley’s environment policy and reporting shows a commitment to energy efficiency and waste management plus a long term commitment to improved environmental performance.
Carbon Neutral
The bank’s operations have been carbon neutral since January 2007.
Equal Opportunities
The bank’s policy addresses the key issues of gender, race, disability and sexuality.
Women on the Board
The bank reports a figure of 9.09% (2007).
Charitable Giving
The bank donated 0.53% of its pre-tax profits in 2007.
Bradford & Bingley
- Savings
- Mortgages (services for existing customers only)
- Insurance (Home, Motor, Travel, Family)
Bradford & Bingley
Bradford & Bingley plc
PO BOX 88
Croft Road
Crossflatts
Bingley
West Yorkshire
BD16 2UA
