Shawbrook is set to offer new buy-to-let (BTL) mortgage customers an energy efficiency discount.
New customers will receive a discount or partial refund of up to 60 basis points on the arrangement fee if their property’s energy performance certificate (EPC) rating is A, B or C.
The discount offer is available when an EPC is produced confirming the property’s rating of C or above. Customers with a mortgage of £250,000 can expect to save up to £1,500 on the arrangement fee.
For new mortgages on properties where the EPC rating improves to at least a C during the mortgage term, customers can apply for a partial refund of their arrangement fee, plus the cost of the new certificate.
If customers purchase an investment property with an EPC rating of D or below, they can use a bridging product to improve the energy efficiency of the property, before transitioning to a BTL mortgage.
If the property improves to a minimum EPC rating of C, the customer will be able to benefit from the energy efficiency discount.
Shawbrook launched the discount offer in line with the UK government’s proposals that will require all properties beginning a new tenancy by 2025 to have an energy efficiency certification rating of C or above.
The changes are to be phased in, starting with all new tenancies from 2025, followed by all tenancies from 2028.
The median EPC rating for a residential property in England and Wales is a D, with properties only required to be above an E rating in order to be let.
Shawbrook managing director of real estate Emma Cox says: “By showing proactivity now, landlords will be in a strong position for the future and one step ahead of the upcoming changes to EPC regulation, which have been proposed for 2025 for new tenancies and 2028 for outstanding tenancies.”