Lenders want EPC A & B for best rates!!!

Lenders want EPC A & B for best rates!!!

10:45 AM, 29th September 2022, About 4 months ago 8

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Hi, Just checking mortgage borrowing rates this morning and came across two products with NatWest and The Royal Bank of Scotland, both asking for EPC’s of A and B to apply for their best fixed rate mortgage products on a five year fixed rate deal!

Talk about kicking people when they are down.

If this becomes a norm across the board, hardly anyone will be able to remortgage!

I have a couple of rental properties in Band B, but all the others are Band C – Lenders will make remortgaging totally untenable in the near future I fear!

Ann

Editor’s note:

A previous Reader’s Question also flagged up this issue:

BTL lenders asking for EPC C or above?


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Comments

AnthonyG

12:17 PM, 29th September 2022, About 4 months ago

I think there is a more fundamental problem with EPC based legislation and financial products. By way of illustration, I have multiple flats in one development. At different assessments, they randomly receive EPC B or C even though the parameters are the same for each of the flats. That means the EPC score is not objective, but depends on the assessor. Linking legislation or financial products to a subjective assessment is unfair because it is unpredictable; for example, you could buy a B and it could subsequently be assessed as a C.

DSR

13:21 PM, 29th September 2022, About 4 months ago

then there is going to be a lot of empty properties out there. LL's are selling up partly as a result of not being able to meet what looks to be like a cost prohibitive EPC C min (in many cases) but if incoming purchaser subject to such loan restrictions then they wont be buying.

There sits a property empty unless the LL reduces it to the point the buyer takes the 'saving' and uses it to pay the higher loan.

The person buying the property then to live in themselves has no need to spend a single £1 on any EPC improvements if they don't want to as they are not letting. (they probably can't afford it anyway!)

When does this utter madness end?

ficodindia

11:38 AM, 30th September 2022, About 4 months ago

remember the ultimate goal of the global elite at the world economic forum : we all gonna own nothing and be happier. using climate change as a way to remove all our belongings from us.

Robert

12:42 PM, 30th September 2022, About 4 months ago

I checked the EPC's on my properties and its clear ther rating is very haphazard Assumptions are made which are clearly wrong For example one property is a flat on the 3rd floor of a 4 story block so it has other flats above and below it But the assessor assumed it had no insulation above or below it I would think another complete flat with floorboards, carpets and central heating would make pretty good insulation But the surveyors solution to bring it up to a C was to install external wall insulation...on a flat 3 floors up in a block. I suspect I will have to pay a proper sensible assessor to do a new EPC with me present to argue against anything obviously stupid

Jireh Homes

19:29 PM, 30th September 2022, About 4 months ago

Please don't be too quick to shoot the Assessor for "unsensible" recommendations. The software used by all assessors throws up a recommendations based on a theoretical improvement, irrespective if practical for a specific property and they are not allowed to remove. External insulation is perhaps the most common non-sensible example, but unfortunately there are a few others. Best plan is to engage with your DEA as to options to raise the SAP score, some of which are not "automatically" listed as recommendations.

Richard Swan

9:31 AM, 1st October 2022, About 4 months ago

We have seen many similar issues, the problem as also that the EPC guidelines / legislation is still changing. In recent years, changes in requirements have meant that EPC grades have improved on many properties despite work not being undertaken. It is worthwhile having a new epc undertaken to see whether you have magically got a better rating by virtue of this.

Paul

20:07 PM, 1st October 2022, About 4 months ago

Reply to the comment left by Richard Swan at 01/10/2022 - 09:31
That's an interesting point Richard. I think, when I need to next I will get a 'local' EPC person to do the inspection. And suggest this is a two phase EPC. First to see where we are at. Then for them to tell me what is the min I can do to improve the rating to scrape through. Double the fee's for them and a little saftey knowing I'm not poking in the blind doing a bit here and there and praying it will pass !! The other issue is if you've added certain insulation factors ( perhaps 200mm Rockwool ) under a suspended floor in certain rooms ( perhaps where you've re-supported joists ) their software cannot take this into account. I had some ceilings that had 120mm celotex & 150mm rockwool in a warm roof confirm - nah, can't do that calculation !

Richard Swan

23:48 PM, 1st October 2022, About 4 months ago

Reply to the comment left by Paul at 01/10/2022 - 20:07
I wish I paid more attention to SAP ratings when doing my uni course but I honestly believe that the Government have set unrealistic targets for the buildings in the UK (both commercial and residential) and they will eventually enable the calculations to meet the expected grades.... Call me cynical. The assessor doesn't HAVE the register their inspection immediately which may give you time to rectify and reassess.

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