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Graham Awards


EPC Green Mortgages - large increase in landlord demand

A prominent buy to let mortgage lender says there’s been a surge of interest in so-called green mortgages linked to good EPC ratings.

Paragon Bank increased buy-to-let lending by 19.5 per cent during the first half of its financial year - it completed £854.6m of buy-to-let loans in the six months to March 31.

The period saw a particularly strong increase in green mortgage completions after Paragon launched its product range offering a pricing incentive for more energy efficient properties. 


A total of £353m of completions were for properties with an EPC of between A and C, a 38.4 per cent increase on 2021.

The pipeline of new buy-to-let business ended the period 44.4 per cent higher than last year to £1.34 billion. Meanwhile, the mortgage loan book ended the period at £12 billion, compared with £11.13 billion in 2021.


Richard Rowntree, Paragon Bank Managing Director of Mortgages - and a regular contributor to Landlord Today’s weekend features section - says: “These are an excellent set of results which reflect Paragon’s focus on the specialist end of the buy to let market. 

“Portfolio landlords demonstrated a strong desire to acquire additional property during the period, helping to underpin the private rented sector at a time of record tenant demand.

“I am particularly pleased to see landlords starting to prepare for expected changes to minimum energy performance standards in the private rented sector, with growth in lending on EPC A-to-C properties. 

“This will be a big focus for the industry as we move towards a net zero future.”

Want to comment on this story? If so...if any post is considered to victimise, harass, degrade or intimidate an individual or group of individuals on any basis, then the post may be deleted and the individual immediately banned from posting in future.

  • George Dawes

    So what will happen to the millions of properties that can never achieve epc c ?

    Build back better - ie demolish them with compulsory purchase with zero recompense and replace with eco rabbit hutches then rent them back to you …

  • George Dawes

    You’ll own nothing and they’ll be happy

  • George Dawes

    Sat in a puddle of your own creation with a vr headset and eating some delicious maggot purée , you’ll be happy - or else , stoned to the gills with whatever potion they decide to ‘give’ you

    Makes 1984 look like Disneyland

    This’ll probably get deleted.. free speech 😂

  • icon

    Paragon have been offering some pretty good rates on their green mortgages, while their non green mortgages haven't been so competitive.
    I'm just about to complete on 2 remortgages with Paragon on 2 HMOs that have always had good EPCs. I didn't have to jump through any hoops because the properties already fitted the criteria. The really good thing with Paragon is they will deal direct with me instead of insisting on using a broker.

    The biggest improvement to the concept of green mortgages would be for the ability to convert a non green one into a green one mid term after energy efficiency improvements had been made. If simply sending in a new better rated EPC certificate triggered a drop in interest rate that would be a real incentive to landlords.


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