The Mortgage Works, the specialist buy to let arm of the Nationwide, is trying to woo landlords to make properties more energy efficient.
A new mortgage product - called the Green Further Advance - must be used to fund a range of sustainable home improvements including the addition of solar panels, window upgrade/replacement, boiler upgrade, air source heat pumps and electric car charging points.
A rate of 1.49 per cent will be available for loans of between £2,500 and £15,000 up to a maximum of 75 per cent Loan To Value, all of which come with no product fees. Landlords can opt for a two or five year fixed product, with rates for those making green improvements to their property up to 50 per cent lower than standard further advance rates.
Current legislation in England and Wales requires buy to let properties to have at least an Energy Performance Certificate rating of E or above.
However the government is pushing the ‘Improving the energy performance of privately rented homes’ consultation which is currently looking to increase the EPC requirement to a C rating for all new tenancies by 2025 and for all existing tenancies by 2028.
The Mortgage Works claims its Green Further Advance will help landlords make the improvements their properties may need and comes just as the government has scrapped the Green Homes Grant, which supported people in making their properties more sustainable and energy efficient.
Daniel Clinton, head of The Mortgage Works, says: “Buildings are the second largest source of emissions in the UK and even small changes, such as adding insulation to pipes can make a big difference in helping improve the green credentials of properties.
“Landlords are required to ensure their properties have at least an EPC E rating, but in future this could be increased to a C rating meaning many will need to make improvements.
“By launching our Green Further Advance with rates significantly lower than our standard range, we hope this will give landlords the push they need to start making those changes.”
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