Fleet Mortgages Unveils New Two-Year Fixed Rate Deals Targeting Energy Efficiency
In a move aimed at promoting energy-efficient rental properties, Fleet Mortgages has launched an enticing new range of two-year fixed-rate mortgages for landlords, specifically tailored for properties with Energy Performance Certificates (EPCs) rated from A to C. This development follows the recent relaunch of the lender’s five-year fixed rate options for the same EPC categories, demonstrating a clear commitment to sustainable property management.
Evaluating energy performance certificates is crucial for landlords in the UK.
These new mortgage products cater to both remortgaging landlords and those purchasing new properties, reinforcing Fleet Mortgages’ position in the competitive buy-to-let market. The offerings include options for standard and limited company products with a loan-to-value (LTV) ratio of up to 75%, and are priced attractively at 4.59%. For landlords operating Houses of Multiple Occupancy (HMOs) or multi-unit blocks (MUBs), the rate stands slightly higher at 4.89%.
All EPC A-C products come with a 3% fee, which has a minimum threshold of £750. Additionally, Fleet Mortgages continues to incentivize energy efficiency improvements with a £1,000 cashback offer for borrowers who upgrade their property’s EPC rating to a C or higher during their initial fixed-rate period. This kind of initiative not only strengthens the rental market but also benefits landlords in the long run by reducing their operational costs.
The Push for Energy Efficiency
Understanding the importance of energy efficiency is vital for landlords, especially with the UK government mandating a shift to higher EPC standards. By 2030, all rental properties are required to meet a minimum EPC rating of C. This crucial deadline should encourage landlords to take action sooner rather than later.
Steve Cox, Chief Commercial Officer at Fleet Mortgages, emphasized the timely introduction of these products, stating, > “After relaunching our EPC A-C range last week with five-year deals, this week we are able to bring two-year products to market. This might well suit landlord borrowers with a shorter time horizon, particularly those who might believe rates will fall further during that period.”
Navigating the Changing Landscape
Cox further explained that these new mortgage products not only support landlords with properties already boasting A-C ratings but also provide beneficial opportunities for those looking to enhance their existing properties. The ongoing evolution of minimum EPC requirements means that understanding and adhering to these standards can be advantageous for both landlords and their tenants.
The increasing pressure from the government to improve energy efficiency presents a unique opportunity for mortgage advisers to engage with clients. It is crucial for advisers to communicate the significant implications these changes have for their landlord clients and to provide strategic guidance that can help navigate these shifting demands.
Conclusion
With the introduction of these new flexible mortgage products, Fleet Mortgages is clearly positioning itself at the forefront of the evolving buy-to-let landscape. The focus on EPC ratings not only aligns with current regulatory expectations but also underscores a broader commitment towards energy efficiency in housing within the UK. As deadlines loom for improved EPC ratings, landlords are encouraged to act swiftly, ensuring they can benefit from these mortgage options while contributing to a more sustainable future for rental properties.
In a climate where energy efficiency will play increasingly critical roles in property value and rental appeal, such initiatives by lenders, like Fleet Mortgages, should be seen as valuable opportunities for growth and adaptation within the UK’s property rental market.
