Foundation Home Loans

New remortgage product launches for landlords who have made environmentally friendly choices with their properties

Foundation Home Loans has introduced a new green reward remortgage for landlords.

The specialist lender has launched the green reward remortgage to support the carbon footprint reduction from UK residential property and aims to raise awareness around the various initiatives currently available to encourage this, such as the government’s ‘Green Homes Initiative’. 

This was recently extended for a further year and is available until 31st March 2022.

Foundation Home Loans’ new five-year, fixed-rate product is available on a remortgage-only basis on PRS properties which have an EPC rating of C or above, dated within the last 12 months — except for listed properties, which are not eligible.

The specialist lender does not stipulate which energy efficient requirements within each home must be implemented in order for them to secure a C rating.

It is also available on an early remortgage basis, so landlords don’t have to wait the usual six months before remortgaging an improved property to the lender.

The product offers a 3.75% rate up to 75% LTV, with £750 cashback on completion and a reduced fee of 0.75%.

George Gee, commercial director at Foundation Home Loans, said: “This new green reward remortgage, exclusively for landlord borrowers, has been designed to support those who have made environmentally friendly choices with their properties. 

“There has already been a real movement to increase the EPC ratings of rental properties, but we’d like to reward landlords who make further progress. 

“Once landlords have actively improved the energy efficiency of their properties, we will provide them with access to a product that delivers a very competitive rate, with a reduced fee and a generous cashback which they may wish to use to help offset the costs of the improvements. 

“Landlords can achieve a number of positives here: making use of the government grants available, upgrading their properties, creating more energy-efficient homes, all while potentially cutting their tenants’ energy bills.”

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