Fleet Mortgages is introducing a limited edition product feature which will reward landlord borrowers with a £1,000 cashback payment if they improve the Energy Performance Certificate (EPC) level of the property to a C or above during the course of 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 beginning of 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 this must be documented on the property’s EPC on the government’s website.
At present, the industry anticipates the Government may introduce measures that could mean all private rental sector property must have an EPC level of C or above by 2028.
Fleet will also continue to offer green five-year fixes and tracker mortgage products to those landlord borrowers who already have properties rated EPC Level C and above. These come with rates 10 basis points below the core offering.
Fleet Mortgages chief commercial officer Steve Cox comments: “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, which you might say focuses on the real matter at hand, supporting landlord borrowers as they seek to improve the EPC of those properties not yet at this level”.
