Green mortgage sales to remain ’static’ in the wake of the credit crunch

It is unlikely that lenders will begin to offer green mortgage products in the near future following the effects of the credit crunch, one financial expert has claimed.

Moneyfacts said that there has been no big change in the number of lenders offering the products over the past four or five months.

However, Darren Cook, head of mortgages for Moneyfacts, said that there is still a demand for the products in the marketplace.

“But the lenders that are in [that market] are generally motivated by social responsibility; it’s due to their company ethics that they supply these products,” he said.

Because of this the firm say that lenders who are already dealing in this sector will have a tendency to stay.

At present only five lenders offer green mortgage products: the Co-operative Bank, Ecology Building Society, Norwich and Peterborough, Giraffe and The Hanley Economic Building Society.

The criteria of these products range from planting 40 trees for every green mortgage taken out to donations to carbon offsetting charities.

Tags: The Co-operative Bank, big change, charities, Co-operative, Norwich and Peterborough Building Society

Co-op ethical policy ‘has turned away £700m’

The Co-operative Bank (Co-op) announced today that it had declined more than £700 million worth of loans for ‘ethical and ecological reasons’.

It also claimed that its ‘ethical positioning’ is a ‘positive driver for business’, with its loan book growing 250 per cent in the 15 years which it has held its ethical policy to total almost £2 billion today.

The bank first formally committed itself to ethical investment in 1992, with its statement that it would not invest in businesses involved in cosmetics testing on animals. It formulated its Ethical Policy statement, committing it to supporting Fair Trade, in 1995.
The Co-op’s chief executive David Anderson hailed the bank’s ethical standard as responsible for changing society: “We’ve witnessed the end of cosmetic testing on animals in the UK; the introduction of legislation to phase out the manufacture of the most harmful chemicals; and Fair Trade – something our customers have supported since 1995 – is now a mainstream brand.”
The figures released by the bank show that ecological reasons – making up almost half the total at £324 million – were by far the most costly factor behind the bank’s loan refusals. Animal welfare came next at almost £150 million, with the arms trade, global trade and human rights concerns all costing over £50 million each.

Mr Anderson remains optimistic for the brand’s future: “Of course, major challenges remain, and going forward we will continue to press for change on the issues our customers care about.”

Tags: The Co-operative Bank, human rights concerns, United Kingdom, Mr Anderson, ethical policy statement, business, Co-operative, mainstream brand

Current accounts now available through credit unions

Credit Unions have recently announced that they will now be able to offer current bank account facilities to their members, giving bank customers that are getting irate with the way that they are being treated by the UK’s major banks another option when it comes to their banking needs. Read more

Tags: banks, credit union, Co-operative, bank accounts, misleading customers, cheque

Kids’ rooms are worth £14bn

The average child in the UK is now worth around £1,260 due to the number of gadgets present in his or her bedroom.

In total, the UK’s children have £14 billion worth of goods in their rooms, with one in ten parents admitting they have spent £2,500 on keeping their youngsters entertained.

Co-operative Insurance (CIS) carried out research into the matter and found that although parents are keen to keep giving their children the latest gadgets, very few update their insurance policy at the same rate.

“Many parents simply do not realise just how valuable the contents of their children’s rooms are,” said David Neave from CIS.

“It is important for people to regularly review the value of their home contents and if necessary increase the level of cover to ensure that it is adequate.”

The most common electrical item to be found in a child’s bedroom is a TV, with 21 per cent of parents saying they allow their child to have one so that they can watch their own programmes undisturbed.

The CIS research also reveals portable gadgets are becoming more popular among children. Around 60 per cent now carry a mobile telephone.

Mr Neave said that this too should lead to parents reconsidering their insurance policies.

“Parents should also ensure that they have personal possessions cover for those items which their children take out of the home; such cover can be provided simply, by adding it to the contents cover,” he added.

Tags: child, uk, realise, Co-operative, child's bedroom, kids, item, personal possessions