Source: Property Master
The leading online buy-to-let mortgage broker, Property Master, has introduced a new search facility that will flag up to its landlord customers when a green mortgage deal will save them money by cutting their monthly payments.
The number of green buy-to-let mortgages has quadrupled in the past six months.
Property Master uses algorithms to search its whole of market database comprising every buy-to-let mortgage lender, their criteria and affordability rules and the more than 3,000 buy-to-let mortgage products that they offer. It has now added a green search capability that asks landlords to enter the EPC certificate of their properties to add into the combination of factors that helps it find the best deal for its customers.
Angus Stewart, Chief Executive of Property Master, said: “The current plan to make it impossible to rent out properties with an EPC grade of less than ‘C’ from 2028 has galvanized the mortgage industry to develop a range of mortgages to encourage landlords to improve the energy efficiency of their properties. Our aim is wherever possible to match those deals to the landlords that would benefit from them.”
Mr Stewart continued: “There is some evidence that improving energy efficiency will increase the value of private rented properties and make them more attractive to tenants anxious to keep their fuel costs down. To these benefits we can now help add the possibility of cheaper mortgage costs.”
Every private rented home must have an EPC and the current required level is an ‘E’. There are currently an estimated around 3.2 million privately rented properties in England and Wales with an EPC rating of D or below.
Green mortgages can offer savings when mortgaging properties of a ‘C’ and above. The EPC certificate shows landlords the current energy rating of a property (on a sliding A to G scale) and what it could achieve if certain listed recommendations were made. These can range from relatively simple measures such as draught proofing and low energy lighting through to costlier measures such as installing green heating systems like heat pumps.
The new Property Master search facility also shows landlords where they can easily check the current EPC of a property and how to access help to improve its rating.