It is a five-year fixed rate deal which is available to rental properties with an EPC rating of ‘C’ or above
Foundation Home Loans has launched a ‘green reward’ BTL product for properties that have a higher energy performance rating.
It is a five-year fixed rate deal which is available to rental properties with an Energy Performance Certificate (EPC) rating of ‘C’ or above, on a remortgage-only basis.
The specialist lender is offering a 3.75 per cent rate up to 75 per cent LTV, with £750 cashback on completion along with a reduced fee of 0.75 per cent for those that qualify.
Foundation hoped the product would play a role in supporting the reduction of the carbon footprint from UK residential properties.
It says it hopes this move also raises awareness about the various initiatives to support this aim, such as the Government’s ‘Green Homes Initiative’ which offers grants to landlords to help them implement energy-efficient upgrades to their properties.
This Government initiative has been extended for a year, and is available until the end of March 2022.
The Green Reward remortgage is also available on an ‘early remortgage’ basis which means landlords do not have to wait the usual six months before remortgaging an improved property to the lender.
Foundation Home Loans commercial director George Gee says this is one of the few products on the market that rewards landlords for making properties more environmentally friendly.
There has already been a real movement to increase the EPC ratings of rental properties, but we’d like to reward landlords who make further progress, Gee says.
He says that once landlords have actively improved the energy efficiency of their properties, we will provide them with access to a product that delivers a competitive rate, with a reduced fee and a generous cashback which they may wish to use to help offset the costs of the improvements.