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Foundation Home Loans brings out BTL and resi EPC-based green mortgages

  • 14/10/2021
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Foundation Home Loans brings out BTL and resi EPC-based green mortgages
Foundation Home Loans has launched green mortgage deals for buy-to-let and residential borrowers with interest rates and cashback based on the property’s energy performance certificate (EPC) rating.


On the BTL side the lender has introduced three five-year fixed rates, available for purchase and remortgage, with its EPC A product priced at 3.14 per cent with £750 cashback.

Its EPC B product has a rate of 3.19 per cent with £500 cashback, whilst its EPC C product comes with a 3.24 per cent rate and £250 cashback.

The loan to value (LTV) is capped at 75 per cent and a 0.5 per cent fee applies. The maximum loan size is £1m. Its interest coverage ratio is 125 per cent times pay rate.

Owner-occupier borrowers can access two-year fixed rates at 75 and 85 per cent LTV. All products have a £595 product fee. The maximum loan size for 75 per cent LTV is £1m, falling to £750,000 at 85 per cent LTV.

Its EPC A product at 75 per cent LTV is priced at 3.04 per cent, 3.09 per cent at EPC B and 3.14 per cent for EPC C.

At 85 per cent LTV owners of properties with an EPC rating of A can access a rate of 3.84 per cent. Its EPC B and EPC C products are priced at 3.89 per cent and 3.94 per cent respectively.

EPC A products have £750 cashback, whilst EPC B and C products have £500 and £250 cashback respectively.

George Gee, Foundation Home Loans’ commercial director (pictured), said: “We want to encourage and reward those homeowners and investors who make the conscious choice to buy energy-efficient properties, or improve those which they currently own.”

He added that energy efficiency of UK housing would become more important to the government’s green agenda and it would “remain committed” to innovating green products.

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