Bribes all Round!
Well not exactly a bribe, more like a financial incentive. Well that is a bribe. When a mortgage company does it they just call it cashback! Fleet Mortgages is offering landlord borrowers £1,000 cashback if they improve the Energy Performance Certificate (EPC) of their property to a C or above during the initial fixed-rate period. The cashback is available on Fleet's five- and seven-year fixed-rate products, excluding Green options, which complete from July 1.
To secure 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 EPC register. Fleet Mortgages is the first specialist buy-to-let lender to offer such a cashback incentive. The lender believes that it will help to motivate landlords to make the necessary improvements to their properties, so they can contribute to a greener future and also get money back against the costs of completing those works. More importantly from a selfish point of view they of course want to safeguard their collateral - if the government pushes for better energy ratings and their security properties fall below that
Fleet Mortgages' chief commercial officer, Steve Cox, said: "We're absolutely committed to supporting the UK's transition to a more sustainable future, and to improving the energy efficiency of the country's private rental sector properties. This cashback feature is designed to help landlords make the necessary improvements to their properties, so they can contribute to a greener future for everyone, and also importantly get money back against the costs of completing those works."
Because they say so
The government is expected to mandate that all private rental properties must have an EPC rating of C or above by 2028. Fleet Mortgages' new product is a way for landlords to get ahead of the curve and improve the energy efficiency of their properties sooner rather than later. Draconian measure? Perhaps. But hey, green is good, right?
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