Landbay has launched its first green mortgage range, which all have rates 0.1 per cent or 0.05 per cent lower than their non-green counterparts, depending on the property’s energy rating.
The buy-to-let lender and former peer-to-peer lending platform said by lowering rates in accordance with property EPC ratings, it hopes to incentivise energy efficient rental properties as an attractive option for landlords.
For five-year fixes with an energy performance certificate (EPC) rating of A or B, at 65 per cent loan-to-value (LTV) there’s a 3.15 per cent product, down from its 3.25 per cent non-green counterpart, and at 75 per cent LTV there’s a 3.25 per cent mortgage which is lower than its 3.35 per cent counterpart.
All green rates are available to properties that have been registered for over 24 months with an EPC rating of C and above.
Read more: Landbay makes changes to product range
“Properties being let by landlords are obliged to have at least an E rated EPC,” said Paul Brett, managing director, intermediaries at Landbay.
“However, the government has said it wants as many as possible to be upgraded to band C or above by 2030.
“We hope our green mortgage range will go some way to help achieving that goal and incentivise more landlords to consider adding energy efficient properties to their portfolio.”