Lenders have rushed to sign up landlords up to “green mortgages” amid panic over eco rules that will force investors to make homes more energy efficient.
The number of green buy-to-let deals – which offer cheaper loans to investors who have or will make energy efficiency upgrades – has tripled in in the past eight months. There were 369 such mortgages at the end of March, up from 118 in August last year, according to data from Mortgage for Business, a broker.
Banks have been forced to encourage landlords to undertake costly eco upgrades after the Government set stringent targets they must meet by 2025. They account for one in six buy-to-let deals on offer to private landlords and one in five deal available to investors who use a limited company.
The mortgages offer larger loans or cheaper rates so landlords can improve a property’s “Energy Performance Certificate” rating.
A sudden surge has come as landlords prepare for rules that require all newly let properties having an EPC C rating by 2025. Existing lets will have until 2028.
