Colin Barrett - Group Mortgage Proposition Director
I read recently that the battle to cut down on the UK’s carbon footprint starts at home. According to the latest research, the residential sector is estimated to be responsible for around 16% of the country’s greenhouse gas emissions1.
It’s this urgent need to make the country’s housing stock more energy efficient that was a key driver in the government releasing the Clean Growth Strategy (CGS) in 2017 which set out a target of ensuring that as many homes as possible have an Energy Performance Certificate (EPC) rating of at least C by 2035. The CGS went even further in the private rented sector by saying the preferred policy scenario is that the improvements for new tenancies are achieved by 2025, and for all tenancies from 2028.2
It means it’s likely we could see more landlords looking for finance to carry out energy efficiency improvements to their properties in the coming years. So I’m delighted to announce the arrival of Precise Mortgages’ first environmentally focused proposition which aims to encourage landlords to invest in energy efficient rental properties.
Our refurbishment buy to let offering, which has helped hundreds of landlords bring new rental properties up to a habitable standard before letting them out, now offers customers a choice of three exit products, depending on the type of refurbishment work being carried out.
With rates from 3.99%, this exit is suitable for standard refurbishments to make a property habitable, for example fitting a new bathroom or kitchen.
Energy efficiency refurbishment
With rates from 3.89%, this exit is suitable for refurbishments which include some element of energy efficiency, for example fitting double glazing, upgrading a boiler or adding loft insulation.
EPC C+ refurbishment
With rates from 3.79%, this exit is suitable for refurbishing properties that already have an EPC rating of C or above, or are awarded a C rating as a result of improvement work.
When you place a case with us, you’ll receive expert support every step of the way from a dedicated underwriter, one application which we’ll key for you, one valuer for both the bridging finance and buy to let mortgage, and one conveyancer with discounted legal fees. You’ll also receive two offers issued simultaneously and two procuration fee payments.
Not only that, customers can also choose between serviced or retained interest payments during the refurbishment stage, and there’s also the added peace of mind of knowing that the rate on offer is the rate they’ll get at valuation, providing there are no changes and the property meets the expected valuation following completion of the improvement work.
If your customer selects either an energy efficiency or EPC C+ exit, they’ll need to arrange a new EPC for the property. For energy efficiency exits, the new EPC must show an increase in the overall Standard Assessment Procedure (SAP) score, while for EPC C+ exits the EPC must show a rating of C or above.
You can find out full details by downloading our complete guide to refurbishment buy to let.
It’s all part of our commitment to providing you and your customers with diverse solutions and straightforward criteria that’s clear and to the point, backed up by dedicated support from a knowledgeable sales team and online tools which are available 24/7.
If you’ve a question or need a little extra help with placing a case, please speak with your business development manager or get in touch with a member of our bridging underwriting team on 0800 116 4385.