Loans of £2,500 to £15,000 at up to 75 per cent loan to value are available with a rate of 1.49 per cent, which the lender said was “significantly lower” than its standard range.
The range comprises two and five-year fixed products with no fees which are available to landlords who will use the whole loan for sustainable improvements.
The list of potential renovations includes adding solar panels, window upgrades or replacements, boiler upgrades, and installation of air source heat pumps and new electric car charging points.
Buy-to-let (BTL) properties in England and Wales are required to earn an Energy Performance Certificate (EPC) rating of E by law.
However, the Department of Business, Energy and Industrial Strategy is currently consulting on improving energy efficiency in privately rented homes.
This includes a proposal to raise the minimum property EPC rating to C for all new tenancies by 2025, and for all existing tenancies by 2028.
“As one of the UK”s largest buy-to-let providers, it’s important that we support our landlords in making their properties more sustainable and energy efficient,” said Daniel Clinton, head of The Mortgage Works.
“Buildings are the second largest source of carbon emissions in the UK and small changes, such as adding insulation to pipes, can make a big difference. Landlords are required to ensure their properties have at least an EPC E rating, but in future this could be increased to C.
“By launching Green Further advance, with rates significantly lower than our standard range, we hope this will give landlords the push they need to start making those changes,” Clinton said.
