The long awaited path to recovery is finally in place and US’s economy finally clawed its way out of its deeest recession since the 1930s in the fourth quarter of 2009. But it only managed to expand by a much weaker-than-expected 0.1%. After an 18 month lull brought forth by recession, the housing market in the US is starting to recover as the number of mortgages outstanding rose and figures show that the number of people borrowing money from banks and building societies is booming like ever before. With the debates whether you agree on climate change or not are heating up. The government plans is still going forward to improve the energy efficiency of the homes with the ‘Pay as You Save’ scheme.
This scheme will encourage house owners to include more energy efficient procedures and fixtures in the home through providing long-term loans to householders keen to install additional insulation, solar panels, wind turbines and the like. The house owner is expected to pay back the eco-loan in installments that should amount to less than the savings made on energy bills. However, as per the new plan, the debt will be tied to the property rather than the borrower. This new form of mortgage is pending legislation and yet to be put in place in the US. Meanwhile, property market experts are of the opinion that this would have a direct effect on the lenders and mortgage brokers as an eco-mortgage on a property could reduce the amount traditional lenders are prepared to advance for a purchase.
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