The Mortgage Works (TMW) has issued a reminder to brokers of the new rules surrounding energy efficiency and confirmed how it will continue to support landlords.
On 1 April, new energy efficiency regulations for private rented property come into force.
Following the introduction of new minimum standards of energy efficiency, landlords with privately rented property must ensure their properties have an Energy Performance Certificate (EPC) rating of E or higher before granting a new tenancy to new or existing tenants. With high property standards already in place, TMW is making only minor changes to the valuation policy for properties not already meeting the minimum E rating.
TMW has confirmed it will continue to lend on properties with an EPC rating of F or G, with the valuer assessing the EPC data and detailing any work to be done to bring the property to a minimum E rating in the valuation report.
The costs of any works will be reflected in the valuation figure. The mortgage offer will be conditional on confirmation that any necessary work must be undertaken within three months, unless the landlord provides an updated EPC or evidence of a valid exemption prior to completion.
Paul Wootton, Nationwide’s director of specialist lending, said: “With new EPC regulations coming into force from April, we’re making minor changes to our valuation policy, which are designed to support landlords and uphold our high property standards.”
For portfolio applications the EPC rating requirements will only apply to the new property.