A growing number of Buy To Let lenders have launched new product ranges that offer reduced rates and fees for environmentally friendly properties. Their aim being to support sustainable landlords and reduce the environmental impact of the built environment. Some lenders are going beyond just a reward for properties with an EPC rating of C or above by incentivising borrowers to refurbish and increase the environmental efficiency of their properties.
According to the latest English Housing survey, 2% of homes in England currently make A and B grades, while around 85% are either C or D, with 13% are rated E, F, or G.
Currently, rental properties are obliged to have an EPC rating of E or above. However, the government wants as many as possible to be upgraded by 2030 and it is felt that these new product ranges will go some way to help achieving that goal and incentivise more landlords to consider adding energy-efficient properties to their portfolio.
These new ranges are available in each area of BTL products, offering reduced rates for standard properties, HMOs, MUFBs and holiday lets, whether that be for purchases or refinance.
Apart from the incentive of lower rates of interest on green mortgages, landlords are recognising the growing value of owning property which not only meets today’s energy standards but also the likely future requirements. If you’re a landlord thinking about improving the energy efficiency of your properties and benefit from these incentives, get in touch.