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Buy to let lender says new eco-loan will be 'push for landlords'

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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  • icon

    So we take a £15k loan out to bring a property up to a C rating and then add that monthly repayment onto the rent, tenant pays again, seems fair enough to me, but I don't expect tenants, shelter, GR etc will like it much.

    • 13 April 2021 09:52 AM

    Let's go for it. I love increasing rent.
    And I will also add my normal 15% for administration fees for any extra paperwork.




    Welcome back David! Your unique refreshing style was much missed!

  • icon

    They are not bothered about energy efficiency it’s only carving out a another lucrative money spinner for themselves.
    I had a bad experience with The Mortgage Works (ruthless) subsidiary of Nation Wide who gives support to Shelter.

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    Do the really think its the availability of funds that stops LLs from improving the energy efficiency of their properties?

    Rather I believe it is the cost (which needs to be passed on to the tenant); the payback (often £20 per year for a £4000 outlay); the vagueness of the EPC system (no guarantee what rating you will get after the work); the selectiveness (only applies to PRS not home owners); the farce of the Govts entire policy (Green Homes Grant - need I say more?); the timescale (ridiculously short) etc etc.

    Good luck with your new product NW!

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    It is the costs another monthly out going to add to his debts. Also many improvements very difficult to achieve when occupants are in situ. I don’t like gift rapping my property on the outside, cladding over my beautiful timeless yellow stock Bricks.

  • Keith  Johnson

    I was marked down because I had electric heating instead of a gas condensing boiler.....dont really understand this? Fossil fuel vs green generated electricity how does that work? Can anyone explain? I was told by the assessor that it was about the cost to heat the property all sounds like BS


    GCH scores highly because it is cheap (although not green) and electricity scores badly because t is expensive (although can be carbon neutral). Gas is supposed to be being phased out by 2035 and yet it is the only sensible way to get to a C.

    The whole thing is a joke!

  • icon

    A bit like my car for ELEZ London it’s will
    not be Compliant in October, which has a Euro 5c engine. However, it produces less harmful emissions than Euro 6e engines which are Compliant but I will have to pay the daily Charge and they won’t.


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