BTL lenders asking for EPC C or above?

BTL lenders asking for EPC C or above?

9:56 AM, 2nd August 2022, About 2 years ago 31

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Just a heads up for everyone – I’ve recently remortgaged to fixed rate products due to the continual increase of the Bank of England Base Rate and, no doubt more to come on the 4th of August!

In every instance, the mortgage lender has stipulated the EPC rating must be C or above in order to gain the new product.

I think this will be across the board with all mortgages now, soon or in the future, regardless of it not being a statutory requirement (as yet) to rent out our properties.

Has anyone else found this issue yet?


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12:58 PM, 2nd August 2022, About 2 years ago

I've had a slightly different experience but not on a BTL. In my case, the current EPC rates the property as an "E" but the provider has said that if I can improve it to a "C", they will refund nearly all of the arrangement fees.


14:46 PM, 2nd August 2022, About 2 years ago

Reply to the comment left by PaulM at 02/08/2022 - 12:58
Out of curiosity, if it wasn't a BTL what was it? Was it your Principle Private Residence (PPR) or something else?

(My own PPR does not have an EPC).


14:50 PM, 2nd August 2022, About 2 years ago

Reply to the comment left by Beaver at 02/08/2022 - 14:46
Yep. Secured against my PPR, but to purchase a BTL.

I just need to get an updated EPC on my home once the loan is in place. Should be an easy C

Andrew Pearce

16:38 PM, 2nd August 2022, About 2 years ago

I have just done two with Principality and they have stipulated we have to keep up with the latest legislation around it.

Graham Bowcock

17:23 PM, 2nd August 2022, About 2 years ago

Lenders checking EPCs and insisting on minimum requirements is definitely happening folks.

Lenders are using their borrowers EPCs to mitigate their own responsibilities as regards carbon use and energy efficiency. Some lenders are looking at different (higher) rates for poor EPCs whilst others will say no outright of too low.

Landlords must be prepared for this as it's very real. That's why they insist on seeing the EPC even when one is not legally required.


17:50 PM, 2nd August 2022, About 2 years ago

Reply to the comment left by Graham Bowcock at 02/08/2022 - 17:23
And is that true for a mortgage on your PPR? Or is it just for BTL?

Michael Johnson - Amzac Estates

19:03 PM, 2nd August 2022, About 2 years ago

I guess nudge tactics are the way forward now. It’s interesting as the ‘C’ minimum is only a proposal at the moment and certainly isn’t anywhere on the statue books. However it’s certainly making the lenders jittery!
Just a thought about the calculations, aren’t they currently based on cost and effective insulation? As we are meant to be heading for the pipe dream of Net Zero, then surely there will be an update with regards to emissions so a property with gas will be graded lower than a property that is electric only?
I am anticipating an increase in spending to bring all our property up but I certainly don’t want to spend money in the wrong direction.
For example we are still renting a property with a ‘G’ rating whilst we wait for the eviction process to take place, on advice we are putting in new central heating (gas) new windows and loft insulation which will get us a C, but if we are looking forward to an emissions inspection then we may fall back to an E? Any thoughts or is this just normal disconnected policy from the government?

Anthony Endsor

19:46 PM, 2nd August 2022, About 2 years ago

Oh. This is the first I've heard about this.
I was recently declined a BTL remortgage supposedly due to poor credit. No actual reason was given and no EPC was requested. I'm guessing this may have been the reason now.

Alan Carter

5:46 AM, 3rd August 2022, About 2 years ago

So how do you get a C rating?
Houzens algorithm?

With vehicle MOTs it's clear what standards are needed - how can legislation cover regs that no one understands? 🤔


7:47 AM, 3rd August 2022, About 2 years ago

I agree with this approach in principle as it's the lenders money and they want to ensure a good future investment however it's a bit premature to be forcing it when.... Firstly the EPC system needs a massive overhaul as it's out dated and inconsistence. Take Air Source Heat pump for example. If a property is on heating oil and it moves over to ASHP the EPC actually gets worse??
Secondly the legislation needs to kick in (not that we need to wait for this but there maybe grants off the back of this to support landlords in upping their EPC's ready for re-mortgage time)

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