The products are for landlords purchasing or remortgaging properties that have an EPC rating of A-C. They are available at 75% loan to value (LTV) with a 3% fee.
Fleet Mortgages’ two-year standard and limited company EPC A-C product is available at 4.39% and the five-year EPC A-C product is available at 5.04%. Its house in multiple occupation (HMO) EPC A-C two-year product is priced at 4.69%, and the five-year offering sits at 5.29%.
All of the EPC A-C products come with a 3% fee and are priced 10 basis points (bps) lower than the lender’s equivalent standard, limited company and HMO 3% fee products.
Fleet Mortgages’ EPC A-C product range and £1,000 Green Cashback product are now aligned with the Green Home Finance Principles (GHFP), which is an industry-led framework that has been developed to encourage and support the financing of energy-efficient homes and property improvements.
The lender said the reintroduction of the EPC A-C products shows continued demand from landlords seeking finance for more energy-efficient properties, alongside rewarding borrowers who have achieved this rating with lower pricing.
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In addition, Fleet Mortgages’ existing standard, limited company and HMO five-year fixed rate products up to 75% LTV have seen reductions of 10bps. Its standard and limited company products are now available at 5.14%, while the HMO offering sits at 5.39%. All of these come with a 3% fee.
Steve Cox, chief commercial officer at Fleet Mortgages, commented: “The reintroduction of our EPC A-C products provides advisers and landlord borrowers with a clear pricing benefit when financing properties [that] already meet higher energy-efficiency standards.
“At the same time, we have reduced rates across our wider five-year fixed rate range in order to ensure advisers continue to have access to competitive options for their landlord clients.
“We know many landlords are focused on improving the quality and energy efficiency of their portfolios in order to meet their future responsibilities and targets in this area. That can be purchasing properties [that] have already achieved higher EPC ratings or investing in improvements to existing stock within portfolios. Our proposition supports both approaches.”
Cox added: “We are also pleased that both our EPC A-C products and Green Cashback initiative have achieved accreditation under the Green Home Finance Principles. This provides further recognition of our commitment to supporting landlords who are investing in energy-efficient properties and making improvements [that] can deliver long-term benefits for their tenants.”
Paragon cuts BTL rates
Paragon Bank has made cuts of 20bps to its buy-to-let (BTL) mortgage range across two- and five-year fixes.
The range now begins from 3.55%, and the firm said options are available for purchase and remortgage up to 75% LTV.
There are several fee options available, including 3%, 4%, 5%, and a flat £3,995 fee, as well as a nil-fee option.
The two-year fixes start from 3.55% up to 75% LTV in Paragon Bank’s green mortgage range. This is available for properties with EPCs of A-C for single self-contained (SSC) properties; rates are 5bps higher for less energy-efficient dwellings.
Rates at 75% LTV in the five-year fixed range begin from 4.75% on green products, again for SSC properties, with the same EPC criteria and pricing differentials.
Paragon Bank has also lowered rates across HMO and multi-unit block (MUB) fixed products, which are priced 15bps higher than the equivalent green EPC SSC products.
All the products are available to individual landlords and limited companies across England, Scotland and Wales.
Jason Wilde, head of mortgage sales at Paragon Bank, said: “Landlords are navigating a market that continues to be shaped by political and economic uncertainty. In this environment, we are seeing many opt for higher-fee products in order to secure a lower headline rate.
“That won’t be the right approach for everyone, however. By reducing rates across the whole range and maintaining a breadth of fee options, we’re giving landlords the flexibility to choose products that best suit their own circumstances and portfolio strategy.”
