The improvement must take place over the initial fixed rate period and cashback is available on the lender’s five and seven-year fixed rates. This does not include its green mortgages and applications must be completed by 1 July.
The lender said it believed it was the first in the specialist buy-to-let market to offer such an incentive. It hoped this would encourage landlords to complete the works needed to make their portfolios more energy efficient.
Advisers or the landlord borrower must let Fleet Mortgages know if the EPC rating of a property has been improved to be eligible for the cashback and this must be documented on the government’s website.
The lender will continue to offer its green five-year fixed mortgages to borrowers with properties rated EPC C or above, as well as tracker options.
Advisers at the centre
Steve Cox (pictured), chief commercial officer at Fleet Mortgages, said: “We’ve been very vocal in the past that having a green product range, rewarding those who have properties already at EPC level C and above, was absolutely right. But this felt like just the first step for us.
“It’s therefore very pleasing to be able to announce this next step, which you might say focuses on the real matter at hand, supporting landlord borrowers as they seek to improve the EPC of those properties not yet at this level.”
He added: “This cashback feature is designed to help motivate landlords to make the necessary improvements to their properties, so they can contribute to a greener future for everyone, and also importantly get ‘money back’ against the costs of completing those works.
“At Fleet we are absolutely committed to supporting the UK’s transition to a more sustainable future, and to improving the energy efficiency of the country’s private rental sector properties, with the obvious benefits this will provide, particularly for tenants.
“Advisers will of course be central to this, in terms of outlining the product feature, the options it gives landlords, plus either they or the landlord borrower can inform Fleet as and when the EPC improvement is made, so we can then deliver the cashback.”
