Foundation launches EPC minimum BTL remortgage and Fleet cuts rates

To be eligible the certificate must be dated within the last 12 months, but listed buildings are not included.

For those that qualify, a five-year fix is available at 3.75 per cent up to 75 per cent loan to value (LTV), with £750 cashback on completion and a reduced fee of 0.75 per cent.

The Green Reward remortgage is also available on an early remortgage basis so landlords do not have to wait the usual six months before remortgaging an improved property to the lender.

Foundation said the product is designed to reward landlords who have paid out to make improvements and added that it hoped it would encourage landlords to use the government’s Green Homes Grant initiative to do so.

Foundation Home Loans commercial director George Gee said: “There has already been a real movement to increase the EPC ratings of rental properties, but we’d like to reward landlords who make further progress.

“Once landlords have actively improved the energy efficiency of their properties, we will provide them with access to a product that delivers a very competitive rate, with a reduced fee and a generous cashback which they may wish to use to help offset the costs of the improvements.

“Landlords can achieve a number of positives here, making use of the government grants available, upgrading their properties, creating more energy-efficient homes, while also potentially cutting their tenants’ energy bills.”

Fleet cuts rates

Meanwhile, Fleet Mortgages has cut rates on its two and five-year fixes across its standard, limited company and house in multiple occupation (HMO) ranges by up to 20 basis points (bps).

All 60 per cent LTV products have been moved up to 65 per cent LTV with rates specifically cut on five-year fixes in standard and limited company products where rental calculation is based on the payrate.

The five-year fix payrate products are the same for both standard and limited company borrowers and include:

• 65 per cent LTV – rates cut by 15bps from 3.59 per cent to 3.44 per cent with a rental calculation of 125 per cent at 3.44 per cent.
• 70 per cent LTV – rates cut by six basis points from 3.65 per cent to 3.59 per cent with a rental calculation of 125 per cent at 3.59 per cent.
• 75 per cent LTV – pay-rate product rate cut by 15bps from 3.79 per cent to 3.64 per cent with the rental calculation of 125 per cent at 3.64 per cent.

The lender has also cut rates on its two-year fixes with its new 65 per cent LTV product down to 3.09 per cent from 3.19 per cent, its 70 per cent LTV down to 3.24 per cent from 3.29 per cent and its 75 per cent LTV down to 3.34 per cent from 3.44 per cent.

The HMO range sees a series of price cuts as well including two-year fixes at 65 per cent LTV down to 3.39 per cent and at 75 per cent LTV down to 3.69 per cent, while five-year fixes at 65 per cent LTV and 70 per cent LTV are down to 3.59 per cent and 3.79 per cent respectively.