Fleet Mortgages is offering landlords lower rates on mortgages for properties with top energy ratings – plus cashback for landlords who upgrade their properties!
Fleet Mortgages has brought back its range of mortgages designed to reward landlords who own properties with good Energy Performance Certificate (EPC) ratings.
These mortgages are available to all types of landlords, whether they own just one property, or a whole portfolio. The range includes mortgages for:
- Standard buy-to-let properties
- Limited companies
- Houses in multiple occupation (HMOs) and multi-unit blocks (MUBs)
Better rates for energy-efficient homes
The best rates are available on properties with an EPC rating of A to C – at least 10 basis points (0.1%) cheaper than Fleet’s standard five-year fixed rate deals.
This means that landlords with energy-efficient properties can currently get a five-year fixed rate mortgage at:
- 4.69% for standard buy-to-let properties and limited companies
- 5.09% for HMOs/MUBs
All these deals come with a 3% fee, with a minimum of £750, and you can borrow up to 75% of the value of the property (loan-to-value or LTV).
Cashback for improving your property’s EPC rating
Fleet Mortgages is also offering a £1,000 cashback incentive to landlords who take out one of their standard mortgages and improve their property’s EPC rating to C or higher within the initial fixed-rate period.
Rate cuts on other five-year fixes
Even if your property has a lower EPC rating, you could still benefit from a rate cut. Fleet Mortgages has reduced rates on its other five-year fixed rate mortgages by 20 basis points (0.2%).
These mortgages are also available up to 75% LTV and come with a 3% fee.
The new rates are:
- 4.79% for standard buy-to-let properties and limited companies
- 5.19% for HMOs/MUBs
Why is Fleet doing this?
Fleet Mortgages’ chief commercial officer Steve Cox says the company wants to encourage landlords to improve the energy efficiency of their rental properties because the government plans to introduce new minimum EPC standards for landlords by the end of the decade.
Cox says:
“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.
“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.”
He also says that these new deals are very competitive and urged landlords to get in touch with Fleet to find out more.