The provider’s criteria has been updated and all properties are required to be a minimum Energy Performance Certificate (EPC) standard of E or above.
Properties with an F or G rating must now have the necessary improvements made and a new EPC rating supplied before completion, the lender said.
If the EPC rating is not confirmed by the valuer, the solicitor will be responsible for carrying out the relevant checks and providing written confirmation that all necessary work has been undertaken.
The updated process applies to both a purchase application and a remortgage application.
Jeff Knight, marketing director at Foundation Home Loans (pictured), said: “Maintaining our adaptable approach is crucial. Considering these new regulations, we are refining our criteria to ensure the buying process is as straightforward as possible.”