Specialist buy to let lender Landbay is the latest to try to turn landlords green by offering discounted mortgages for rental units with ‘good’ Energy Performance Certificate ratings.
All Landbay’s green products offer a 0.1 per cent or 0.05 per cent reduction against their non-green counterparts, depending on the property’s energy rating.
By lowering rates in accordance with property EPC ratings, the company says it hopes to incentivise energy efficient rental properties as an attractive option for landlords.
Examples of the new rates include:
- 5-year fixed rate with an EPC A/B rating – 3.15% up to 65% LTV, down from 3.25% - 1.5% fee;
- 5-year fixed rate with an EPC A/B rating – 3.25% up to 75% LTV, down from 3.35% - 1.5% fee;
- 5-year fixed rate with an EPC C rating – 3.20% up to 65% LTV, down from 3.25% - 1.5% fee;
- 5-year fixed rate with an EPC C rating – 3.30% up to 65% LTV, down from 3.35% - 1.5% fee.
All green rates are available to properties that have been registered for over 24 months with an EPC rating of C and above.
Landbay managing director Paul Brettsays: “Properties being let by landlords are obliged to have at least an E rated EPC. However, the government has said it wants as many as possible to be upgraded to band C or above by 2030.
“We hope our green mortgage range will go some way to help achieving that goal and incentivise more landlords to consider adding energy efficient properties to their portfolio.”
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