Buy to let mortgage company Shawbrook has announced an ‘Energy Efficiency Discount’ on its arrangement fees.
To qualify, landlords will have to produce an Energy Performance Certificate with a rating of C or better on the property being mortgaged.
The discount equates to six tenths of one percent of the mortgage
The company said that new customers who bring their properties up to the ‘C or better’ standard during the course of their mortgage will be able to apply for retrospective rebates on their arrangement fees. It also pointed to its own bridging loan facility that could be suitable for those wishing to improve the energy efficiency of their properties before agreeing a mortgage.
Research conducted by Shawbrook found that close to a quarter (23 per cent) of landlords said their properties currently had energy efficiency ratings of D or lower. And they believed they could lose up to £9,500 a year in missed rental payments if they are unable to make changes ahead of the 2025 deadline improvement.
‘This product enhancement not only incentivises landlords to improve the energy efficiency rating of their property, but it also actively rewards customers when a property already has a high energy efficiency rating’, said real estate managing director at Shawbrook, Emma Cox.
‘By showing proactivity now, landlords will be in a strong position for the future and one step ahead of the upcoming changes to EPC regulation, which have been proposed for 2025 for new tenancies and 2028 for outstanding tenancies’.