Lenders adjust rates in response to EPC C targets and market changes

A lender has announced rate cuts on their products, with Fleet Mortgages relaunching five-year fixed-rate options for landlords buying or remortgaging properties with an EPC rating of A-C.

Fleet Mortgages has also reduced rates on its two-year product transfer options for existing customers across standard, limited company, and HMO ranges.

Meanwhile, the lender Together has amended rates across its product portfolio.

EPC C targets by 2030

Fleet Mortgages states that with EPC C targets set for all private rented sector properties by 2030, its product range is designed to help landlords meet these goals.

Available across its three core product ranges, the standard and limited company products are available up to 75% LTV at a price of 5.04%, while the HMO/MUB product is offered at 5.44%.

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.

The lender has also cut the rates on its two-year product transfer (PT) products for existing customers, also across all three ranges: standard, limited company and HMO.

The two-year PTs have been reduced by 10 basis points, with new rates of 4.59% for standard and limited company borrowers, and 4.89% for HMO.

More landlords looking to improve properties

Steve Cox, Chief Commercial Officer at Fleet Mortgages, said: “With all private rental sector properties now required to have an EPC of A-C by 2030, we anticipate more landlords will be looking to improve those properties that do not currently make the grade.

“There are a number of reasons for doing this sooner rather than later, not least the opportunity to secure better rates for properties at this level. We are pleased to be relaunching these five-year options for A-C – alongside our existing two-year products – which are priced at 10 basis points below the non A-C alternatives.

“Over the course of a five-year term that presents a good mortgage saving and, as we know, a large number of properties may not require a vast amount of work or investment in order to get them to the required level.”

Mr Cox adds: “To offset some, or indeed all, of this cost Fleet continues to offer our £1,000 cashback which can be put towards any work as long as it is completed within the fixed term of the mortgage and can be proven with an up to date EPC.

“Overall, and certainly alongside an increased demand for tenants for energy-efficient properties, there are plenty of compelling reasons for landlords to improve their properties and secure mortgage price discounts.”

Adjust rates on a number of products

Lender Together has announced that fixed-rate and discounted first and second-charge loans will increase, while consumer buy-to-let (CBTL), regulated bridging loans, and standard variable rate products remain unchanged.

For commercial products, buy-to-let (BTL) first charge two and five year fixed term rates, second charge five year fixed rates and fixed homeowner business loans will increase. All variable rate products, unregulated bridging and commercial term will not change.

Matt Kelly, senior commercial product manager at Together said: “Following a sustained period of swap rate increases, led by market expectations that the Bank of England base rate will remain higher for longer and reaction to the recent Budget announcement, we have had to take the decision to adjust rates on a number of our products.

“We remain committed to helping our customers achieve their property ambitions, and will continue to track the market to further adjust our products accordingly.”

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