The Mortgage Works, who are the buy-to-let section of Nationwide, is looking to connect with landlords who have energy-efficient rental properties. The Green Further Advance product can be used to carry out sustainable home improvements.
Some of the most likely changes landlords can make include:
- Adding solar panels to the property
- Upgrading or replacing the window
- Upgrading the boiler
- Adding electric car charging points
- Adding air source heat pumps
A rate of 1.49% is set to be available for loans between £2,500 and £15,000. This will be up to a maximum of 75% Loan To Value (LTV).
Daniel Clinton, head of The Mortgage Works, says: “Buildings are the second largest source of emissions in the UK and even small changes, such as adding insulation to pipes can make a big difference in helping improve the green credentials of properties. Landlords are required to ensure their properties have at least an EPC E rating, but in future this could be increased to a C rating meaning many will need to make improvements. By launching our Green Further Advance with rates significantly lower than our standard range, we hope this will give landlords the push they need to start making those changes.”
Landlords can make energy efficient changes
Keystone says its new Green Product Range rewards landlords who make their homes more energy efficient.
Keystone are also looking to reward landlords with energy-efficient properties, with their Green Product range. The lender states; “We now offer a 0.15 per cent reduction on our core range, these rates are open to landlords with properties five years or older, and with an EPC rating of A to C.”
The Green Product range begins at 3.0% for a two-year fixed rate, and at 3.19% for five-year fixed rates. There is a maximum loan size of £1m, and loans will be available for purchase or re-mortgage on all properties, which includes multi-units and HMOs.
Tenants want greener homes
The statement from Keystone also said; “Not only are we launching this exciting product range, we will also be partnering with environmental group Make It Wild to help with offsetting Keystone’s carbon footprint. MIW will plant one tree for each green mortgage application completed with us.”
Keystone chief executive David Whittaker says: “The climate crisis is the greatest challenge of our, or indeed any, generation and the only way we can solve it is if we all play a part, including the mortgage and property sectors. At 14 per cent of total emissions, the UK’s ageing and inefficient housing stock has a far greater carbon footprint than the farming industry in this country and nearly as much as its shops and offices.”
David continued by saying; “Therefore, it’s clear we need to do something – and urgently. Going out and buying a new build with an A or B EPC rating is not an option for most and won’t solve the problem. So, what we need is a retrofitting programme on existing properties the likes of which we have never seen before in this country. That’s why we launched our green mortgage range, to play a small role incentivising landlords to upgrade the energy efficiency ratings of their properties now, not tomorrow or the day after.”
David concluded by saying; “If we can persuade even a few landlords to make their homes greener – and lower the energy bills of their tenants in the process – then this range will have achieved everything we wanted it to achieve.”
Anyone looking to arrange informed and up to date guidance regarding a mortgage should speak with an experienced professional.