Specialist lender Pepper Money is relaxing its EPC lending rules.

It will now support HMOs on properties with an EPC rating of D or E, broadening eligibility beyond the existing A–C requirement.

It says this is about adopting “a pragmatic approach to energy efficiency.”

The change is contained in a series of enhancements to its Buy to Let mortgage offering.

These include rate reductions across two and five-year fixed products and expanded criteria for Houses in Multiple Occupation (HMOs).

Pepper has also cut rates by up to 25 basis points on two-year fixed products and up to 15 basis points on five-year fixed products.

The lender has introduced new lowest two- and five-year fixed rates of 4.44% up to 70% LTV, with a 7% completion fee. 

Pepper re-entered the Buy to Let market in 2025, introducing what it calls a product range designed around flexibility, speed and inclusive affordability assessments. 

Affordability continues to be assessed using ICRs rather than personal income or bank statements, with rental income assessed by an independent RICS surveyor.