“I have just improved the EPC rating of my buy to let property to C. Should I remortgage to get one of these new green mortgage deals?”
This is an inquiry I will definitely hear more often. Why?
It is likely that landlords of privately rented homes will be required to show an energy efficiency rating C with all new tenancies by 2025, and with every rented property by 2028.
As the Government keeps pushing for tightening the rules on energy efficiency ratings for private rentals it has also called on lenders to help incentivise green properties. Meanwhile, the Department for Business, Energy and Industrial Strategy has been fleshing out ideas for mortgage lenders becoming green influencers.
What can you as a landlord expect from some green mortgage offers currently on the market if your property’s EPC rating ranges between A and C?
- 80% Loan To Value, including for additional loans secured against a property (further advances),
- Mortgage rate reductions of up to 0.15%,
- 2-year variable discount rates of 1.99% (A), 2.29% (B) and 2.49% (C) (5% reversion rate),
- 1.49% on further advances for loans between £2,500 and £15,000,
- £500 to £750 cash back on completion,
- Offers available for single lets, HMOs, and multi unit blocks over 2 and 5 year terms.
Do you think these terms will encourage landlords to make green investments in their properties?
This information is for general purposes only and does not constitute business advice. To discuss your requirements and explore green BTL mortgage options please get in touch:
[email protected].
