Buy to Let specialist lender Fleet Mortgages has announced the launch of new green mortgage fixed and tracker products. The new green mortgage tracker products are available to landlord borrowers seeking to purchase or remortgage properties with an EPC rating between ‘A’ and ‘C’. These recently released products are offered at 75% LTV and could be appealing to landlords looking to remortgage or update their property portfolios ahead of the EPC rating restriction changes in 2025 for new tenancies and 2028 for existing tenancies.
Advisers now have access to a range of fixed rate deals including standard and limited company products like the five-year fix green mortgage – currently priced at 6.39% (75% LTV) and a seven-year fix priced at 6.53% (75% LTV).
Commenting on the launch of the new green products, CCO at Fleet Mortgages, Steve Cox, said that “the launch of brand-new green mortgage options, for those purchasing or remortgaging properties with an EPC rating of ‘C’ and above, will appeal to those landlord borrowers who are seeking finance at this time, whether remortgaging or seeking to add to portfolios”.
“It was always our intention to move quickly and bring back as full a range of products, in as quick a timescale, as possible. We’ll continue to monitor ongoing activity, pricing and business levels, and advisers will always be the first to know when we intend to add further product options to our range.
“We remain absolutely committed to supporting advisers and their buy-tolet landlord borrowers both now and in the future.”
The recent introduction of these green mortgage products from Fleet coincides with a common trend seen in the last few years. Green mortgages are on the rise amongst multiple lenders in various sectors of the market. With the upcoming EPC regulatory changes in 2025, 2028 and beyond – it’s relatively safe to assume that landlords and buyers alike will continue to turn to greener products. The new build market has played a key role in helping to reduce the property industry’s energy consumption. As the government looks towards the net zero target, the green conversation in the new build sector will only grow louder.
With the vast majority of new build properties having EPC ratings of C or higher, green mortgages are often a viable option for buyers when looking at acquiring such a home. Landlords can especially benefit from green buy to let products as the deadline for new tenancies to be compliant with EPC regulations is now less than three years away. As landlords’ mortgage terms come to an end, updating their portfolios or improving the energy efficiency of their existing properties is likely to be a high priority. As these deadlines draw nearer, green mortgages could be the answer for a lot of landlords as they look make their portfolios greener.
