Lender reinstates Green mortgages for landlords with good EPCs

Buy to let specialist lender Landbay has brought back its green five-year fixed rate range as well as launching two new mortgages and reducing rates on others.

The green range for properties with an EPC rating of A to C was withdrawn following the mini-Budget last September but has made a return. 

Green rates have a 0.10 per cent reduction off Landbay’s five-year standard products and there are five options at 75 per cent LTV starting at 4.69 per cent with a five per cent fee.

The 4.89 per cent green rate comes with a four per cent fee, 5.09 per cent has a three per cent fee and the 5.29 per cent option offers a fee choice of either two per cent or £1,999.

A new standard two-year fixed rate mortgage has been introduced at 4.19 per cent and for small HMOs the two-year fix is 4.25 per cent. Both products have an LTV of 75 per cent and a four per cent fee.

Meanwhile, rate reductions have been made on two standard five-year fixed rate products with a three per cent fee. The 55 per cent LTV product is down to 4.99 from 5.09 per cent, and the 65 per cent LTV is now 5.09, down from 5.14 per cent.

Rob Stanton, business development director at Landbay, says: “It’s wonderful news that we can relaunch our green range as there have been less green buy-to-let mortgages in the market recently. We want to encourage landlords to upgrade property to at least a C rating in preparation for forthcoming legislation and to make homes more energy efficient.

“Our product development team has also been busy designing new products and reducing rates on existing ones giving our intermediary partners and their landlord clients more choice. The two and five-year fixed rates are equally as popular at the moment and by offering a range of rates and fees it is easier for landlords to pass stress tests.”

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