Gen H has revised its affordability model to increase the amount some buyers can borrow for energy-efficient new-build homes.

The residential mortgage lender said the change reflected the lower running costs associated with properties carrying higher energy performance certificate ratings.

New-build homes are typically more energy efficient than older properties, resulting in lower monthly energy bills. Gen H will now take these savings into account when assessing affordability, allowing qualifying applicants to borrow more than under its standard model.

An applicant earning £50,000, with a £50,000 deposit and existing loan repayments of £300 a month, could see their maximum borrowing on a two- or three-year fixed-rate mortgage rise from £249,600 to £253,800.

Sara Palmer, sales and distribution director at Gen H, said: “It’s important to reward energy efficiency in housebuilding wherever we can – it’s better for people and for the planet.

“This tweak to our modelling rightly recognises the positive impact new build homes can have on the monthly budget, and will help unlock doors for families right on the edge of affordability.”