Fleet Mortgages cuts rates and relaunches EPC A-C products for landlords

A buy-to-let lender has slashed rates and relaunched products for landlords buying or refinancing properties with an EPC rating of A-C, including cuts on five-year fixed deals.

Fleet Mortgages has relaunched its products to encourage landlords to add higher EPC-rated properties to their portfolios and help fund upgrades for properties that don’t yet meet these standards.

The relaunched EPC A-C products are available across Fleet’s three core ranges: standard, limited company, and HMO/multi-unit blocks.

They are priced 10 basis points lower than the equivalent five-year products, providing a price incentive for borrowers choosing more energy-efficient properties.

The move comes after Ed Miliband announced all private rented properties will need to meet EPC C by 2030.

Energy efficiency of rental properties is a significant issue

The standard and limited company products are available up to 75% LTV at a price of 4.69%, while the HMO/MUB product is offered at 5.09%. All EPC A-C products come with a fee of 3%, with a minimum of £750.

Fleet also continues to offer its £1,000 cashback incentive to landlord borrowers who improve the EPC level of their property to a C or above during the course of their initial fixed-rate period.

Steve Cox, chief commercial officer at Fleet Mortgages, said: “Energy efficiency of rental properties is a significant issue and will continue to be as landlords are expected to meet new government-set minimum standards of C and above by the end of the decade.

“Clearly, we want to put in place incentives across the board for landlords to not just improve those properties that don’t currently meet these levels, but to also reward those with lower pricing in order to benefit further from this.

“These relaunched EPC A-C products are very competitively priced and are also 10 basis points below our five-year fixed-rate equivalents, making it worth landlords’ while to be either purchasing or refinancing properties at these higher EPC standards.

Further opportunity to meet affordability criteria

Fleet has also cut rates by 20 basis points on its existing five-year fixed-rate products with a 3% fee. The standard and limited company products are now available at 4.79%, while the HMO/MUB product is available at 5.19%; all up to a 75% LTV.

Mr Cox adds: “We’ve also been able to cut rates on our five-year fixes with a 3% fee by a healthy 20 basis points, providing advisers and their landlord borrowers with lower rates and a further opportunity to meet affordability criteria and secure the level of loans they want and need.”

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