How will the move benefit borrowers?
Specialist buy-to-let lender Fleet Mortgages has reintroduced its product range for landlord borrowers purchasing or refinancing properties with an energy performance certificate (EPC) rating of ‘A’ to ‘C’.
The relaunched EPC ‘A’ to ‘C’ products are available across Fleet’s core product ranges — standard, limited company, and HMO/multi-unit blocks— and are priced 10 basis points lower than equivalent five-year products.
The standard and limited company mortgages are offered at a rate of 4.69%, while the HMO/MUB product is available at 5.09%. All come with a 3% fee, subject to a £750 minimum.
Fleet continues to offer a £1,000 cashback incentive for landlords who improve their property’s EPC rating to a ‘C’ or higher during the initial fixed rate period.
According to the lender, these moves are intended to encourage landlords to add energy-efficient properties to their portfolios or upgrade existing properties which do not meet the required EPC levels.
“Energy-efficiency of rental properties is a significant issue and will continue to be as landlords are expected to meet new government-set minimum standards of ‘C’ and above by the end of the decade,” said Steve Cox (pictured), chief commercial officer at Fleet Mortgages.
“Clearly, we want to put in place incentives across the board for landlords to not just improve those properties that don’t currently meet these levels, but to also reward those with lower pricing in order to benefit further from this.
“These relaunched EPC ‘A’ to ‘C’ products are very competitively priced and are also 10 basis points below our five-year fixed-rate equivalents, making it worth landlords’ while to be either purchasing or refinancing properties at these higher EPC standards.”
In addition to reintroducing products, Fleet Mortgages has reduced pricing by 20 basis points on several of its existing five-year fixes with a 3% fee.
The lender’s standard and limited company products are now available at 4.79%, with the HMO/MUB product priced at 5.19%, all up to 75% loan-to-value (LTV).
“We’ve been able to cut rates on our five-year fixes with a 3% fee by a healthy 20 basis points, providing advisers and their landlord borrowers with lower rates and a further opportunity to meet affordability criteria and secure the level of loans they want and need,” Cox said.
“It is a busy time in the buy-to-let sector with a large number of market moves and new opportunities, and we would urge advisers with landlord borrower clients to contact the Fleet sales team so we can outline the positive solutions we can help them deliver.”
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