Buy-to-let lender, Landbay, has unveiled its first green mortgage range.
All green products offer a 0.1 or 0.05 percentage point reduction against their non-green counterparts, depending on the property’s energy rating.
By lowering rates in accordance with property EPC ratings, Landbay hopes to incentivise energy efficient rental properties as an attractive option for landlords.
Examples of the new rates include:
- 5-year fixed rate with an EPC A/B rating – 3.15% up to 65% LTV, down from 3.25% – 1.5% fee
- 5-year fixed rate with an EPC A/B rating – 3.25% up to 75% LTV, down from 3.35% – 1.5% fee
- 5-year fixed rate with an EPC C rating – 3.20% up to 65% LTV, down from 3.25% – 1.5% fee
- 5-year fixed rate with an EPC C rating – 3.30% up to 65% LTV, down from 3.35% – 1.5% fee
All green rates are available to properties that have been registered for over 24 months with an EPC rating of C and above.
Paul Brett, managing director, intermediaries at Landbay, said: “Properties being let by landlords are obliged to have at least an E rated EPC. However, the government has said it wants as many as possible to be upgraded to band C or above by 2030.
“We hope our green mortgage range will go some way to help achieving that goal and incentivise more landlords to consider adding energy efficient properties to their portfolio.”