The cashback is available on the lender's five- and seven-year fixes
Specialist buy-to-let lender Fleet Mortgages has announced a new limited edition product feature rewarding landlord borrowers who improve the energy efficiency of their property with a £1,000 cashback.
The cashback is available on Fleet’s five- and seven-year fixed rate products, excluding green options, which complete from July 1, 2023.
Hoping to incentivise landlords to carry out the works required in order to improve their property’s energy efficiency, Fleet Mortgages will provide the cashback to landlords if they improve the energy performance certificate (EPC) level of the property to a rating of ‘C’ or above during the course of the initial fixed rate period.
To be eligible for the cashback, advisers or the landlord borrower must inform Fleet if the EPC level of the property has been improved, and this must be documented on the property’s EPC on the government’s website.
Introducing our new limited edition green cashback product feature. We'll reward #landlord borrowers with £1,000 cashback if they improve the EPC level of the property to C or above during the course of the initial fixed rate #mortgage period.https://t.co/bEIRzkWPGM#buytolet pic.twitter.com/15Ef1gMAQS
— Fleet Mortgages (@FleetMortgages) June 20, 2023
Fleet said the new product feature was designed to promote energy efficiency improvement in rental properties, and to help landlords achieve a likely requirement of minimum EPC levels in the future. The lender also said the initiative was part of its own push to support the government’s targets on achieving net zero carbon emissions by 2050.
The lender will continue to offer green five-year fixes and tracker mortgage products to landlord borrowers who already have properties with an EPC rating of ‘C’ and above, with rates 10 basis points below the core offering.
“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,” Steve Cox (pictured), chief commercial officer at Fleet Mortgages, commented in a post announcing the cashback feature. “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.”
Cox reiterated Fleet’s commitment to supporting the UK’s transition to a more sustainable future by helping improve the energy efficiency of the country’s private rental sector properties.
“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,” he said.
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