Fleet Mortgages has reintroduced its Energy Performance Certificate (EPC) A-C products aimed at landlords looking to buy or refinance properties, and reduced rates on several 5-year fixed-rate products.
The new EPC A-C products are offered across Fleet’s three main ranges: standard, limited company, and house in multiple occupation (HMO) or multi-unit blocks (MUBs).
These products are priced 0.10% below the equivalent 5-year products, providing an incentive for borrowers interested in more energy-efficient properties.
Standard and limited company products are available at 4.69% up to 75% LTV, while the HMO/MUB product is priced at 5.09%.
All EPC A-C products carry a fee of 3%, with a minimum of £750.
The lender provides a £1,000 cashback incentive for landlords who improve their property’s EPC level to a C or better during their initial fixed-rate period.
Fleet has further cut rates by 0.20% on its existing 5-year fixed-rate products with a 3% fee.
The standard and limited company products are now available at 4.79%, while the HMO/MUB product is set at 5.19%, all up to 75% LTV.
Steve Cox, chief commercial officer at Fleet Mortgages, said: “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.
“These relaunched EPC A-C products are very competitively priced and are also 10 basis points below our 5-year fixed-rate equivalents, making it worth landlords’ while to be either purchasing or refinancing properties at these higher EPC standards.
“At the same time, we’ve also 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.
“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.”
