Press
Mortgage Solutions 17th Oct 2005
Demand for ethical products spurs lenders to review their HNW range
The growing high-net-worth market is demanding more ethical products to invest with, according to market analyst Datamonitor.
Research from the firm showed the UK high-net-worth population grew by 12% in 2004 and is set to rise even more in following years. As a result, many private banking providers are reviewing their products and services to appeal to these investors and the report highlighted ethical investments as one of the main factors being considered.
Several mortgage lenders offer ethical products to fit in with borrowers' beliefs in terms of environmental, religious and social issues. And this is becoming more of a growth area, especially in terms of green mortgages, according to Alison Rolls, head of communications at Norwich and Peterborough (N&P) Building Society. "People today are in a position to make sure their borrowings and savings are more responsible," she said.
However, James Carter, IFA at Virtue Financial, said he advised borrowers to choose an ethical company, such as the Co-operative Bank, rather than opting for a green mortgage. He explained: "A borrower cannot make that much difference to the environment through a mortgage and it always means more money. With affordability being tight for many people, an extra £30 a month can really make a difference."