Fleet Mortgages has released a product this week (20th June 2023) which will reward landlord borrowers with a £1,000 cashback payment, if they improve the EPC of the property to a C or above during the initial fixed-rate period.
The cashback is available on Fleet’s five- and seven-year fixed-rate products, excluding green options, which complete from the 1st July 2023.
The lender is hoping it will incentivise landlords to carry out the works required in order to improve their property’s EPC if it is currently below C.
To be eligible for the cashback, advisers or the landlord borrower must inform Fleet if the EPC level of the property has been improved and document this on the government website.
The lender said the initiative was part of its own push to support the government’s targets on achieving net zero carbon emissions by 2050.
It is anticipated that all PRS property will need to have an EPC level of C or above by 2028.
Fleet will continue to offer green five-year fixes and tracker mortgage products to those landlord borrowers who already have properties rated C and above, with rates 10 basis points below the core offering.
Steve Cox, CCO at Fleet Mortgages, commented: “We’ve been very vocal in the past that having a green product range — rewarding those who have properties already at EPC level C and above — was absolutely right, but this felt like just the first step for us.
“It’s therefore very pleasing to be able to announce this next step, supporting landlord borrowers as they seek to improve the EPC of those properties not yet at this level.
"This cashback feature is designed to help motivate landlords to make the necessary improvements to their properties, so they can contribute to a greener future for everyone, and also get money back against the costs of completing those works.
“At Fleet we are absolutely committed to supporting the UK’s transition to a more sustainable future, and to improving the energy efficiency of the country’s PRS properties, with the obvious benefits this will provide, particularly for tenants.”
