By using this website, you agree to our use of cookies to enhance your experience.
Graham Awards


Another buy to let mortgage lender pushing eco-friendly rentals

Yet another buy to let lender has released new products aiming to push the sector into more environmentally-friendly properties. 

The Foundation Home Loan product pricing starts at 1.99 per cent for properties with an energy efficiency rating of A, which is a discount of 3.1 per cent for two years; for products with an energy efficiency rating of B, the current rate is 2.29 per cent (a discount of 2.8 per cent) and for properties with an energy efficiency rating C, the current rate is 2.49 per cent (a discount of 2.6 per cent).

The lender says these so-called Green ABC mortgages are priced to reflect the increased benefit to the landlord based on the energy efficiency rating of the property - the better the EPC rating of the property being purchased, the greater the discount applied to the 5.09 per cent reversion rate.


Each mortgage is available up to 75 per cent loan to value, comes with a two per cent product fee and there are no early repayment charges. 

There is no limit to the background portfolio size of the borrower, subject to a maximum of £5m.

Foundation’s commercial director George Gee says: “Up until now our ‘Green’ products have only been for those landlords seeking to remortgage having improved the efficiency rating. Now, we are broadening this range by offering it to landlords when  purchasing, and rewarding those who choose a more energy efficient property. 



“The better the EPC rating, the bigger the discount, and our aim is to help meet the needs of landlords who want a more energy-efficient property portfolio.

“We were one of the first specialist lenders to launch a green product offering and we are seeking to support  landlords in securing the most energy efficient properties possible.

“The government has itself set an ambitious target of net zero greenhouse gas emissions by 2050, and it’s widely thought that in order to do this we’ll need to eliminate energy inefficiencies from UK housing stock by 2030.”


Please login to comment

MovePal MovePal MovePal
sign up