Foundation Home Loans has unveiled new two- and five-year fixed-rate EPC Saver products for its buy-to-let and residential brands, developed in partnership with Vibrant Energy Matters. These new offerings are designed to assist both landlords and owner-occupiers who are in the process of purchasing or remortgaging properties. The aim is to support borrowers who need financial help to renovate their properties and improve their energy performance.
The EPC Saver products specifically target those looking to achieve an Energy Performance Certificate (EPC) rating of C or above. By facilitating renovations and energy improvements, these products aim to help borrowers meet the necessary standards for better energy efficiency, which is increasingly important for both regulatory compliance and property value.
The Buy to Let EPC Saver is specifically tailored for F1 borrowers, who have nearly perfect credit histories. This product is available as both two-year and five-year fixed-rate options, with a maximum loan-to-value (LTV) of 75%. It comes with a 1.25% fee and rates starting at 5.94%. This offering is aimed at investors looking to improve the energy efficiency of their rental properties while benefiting from competitive financing terms.
On the other hand, the Residential EPC Saver is designed for F1 borrowers with minor credit issues. It also provides two- and five-year fixed-rate options, available up to 75% LTV, but with a fixed fee of £595 and rates beginning at 6.24%. This product caters to individuals who may have slight blemishes on their credit records but still need support in improving their home’s energy performance.
Both the Buy to Let and Residential EPC Saver products include several additional features. Borrowers receive a detailed Energy Performance Certificate (EPC) assessment through Vibrant Energy Matters, along with a bespoke report outlining the necessary steps to achieve the highest rating for their property. Additionally, borrowers can access further consultancy services if desired. Both products also offer £1,000 cashback, which can be used towards the renovation work required to enhance the property’s energy efficiency.
Landlords have the opportunity to order a free EPC inspection up to three months after completing their mortgage, providing them with a valuable baseline for future property improvements. This inspection is part of a broader initiative to support landlords in upgrading their properties’ energy performance.
Tom Jacob, Director of Product and Marketing at Foundation Home Loans, elaborates: “Most Green mortgage products available in the market are intended for properties that have already achieved or surpassed an EPC rating of C. In contrast, our product is specifically designed to assist those who are working towards reaching or exceeding this standard. It includes a complimentary EPC inspection and a comprehensive report from Vibrant Energy Matters. This report outlines the critical areas for improvement and provides actionable steps to enhance the property’s energy efficiency. Additionally, we offer a significant £1,000 cashback to help cover the costs associated with these upgrades.
“This initiative is available to both landlords and owner-occupiers. Our goal is to support clients who are committed to improving the energy efficiency of their properties. By doing so, they can benefit from lower energy costs while also contributing to the reduction of carbon emissions across the UK’s property market. We are dedicated to helping clients achieve these goals and continue to promote improvements in energy performance and sustainability in the housing sector.”
With the Buy to Let and Residential EPC Saver products, we are providing options that include significant cashback and consultancy support from Vibrant Energy Matters. This assistance helps property owners improve their EPC ratings, benefiting both themselves and their tenants, as well as contributing to environmental improvements.
Recently, Landlord Today reported on new products from Paragon Bank that offer preferential rates for landlords with higher EPC ratings.
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