Foundation Home Loans has launched ‘Green ABC+’ fixed-rate products for both buy-to-let (BTL) and owner-occupied mortgages, with rates and cashback based on the property’s energy performance rating.
For BTL landlord borrowers purchasing or remortgaging, Foundation is offering a set of 5-year fixed-rate options, starting at 3.14%, available up to 75% loan-to-value (LTV) with a reduced product fee of 0.5% and a cashback reward between £250 and £750, dependent on the EPC rating of the property.
Foundation will allow early remortgaging on these BTL products and they are available to individual and limited companies, and portfolio and non-portfolio landlords.
For owner-occupier borrowers buying or remortgaging, Foundation offer a range of 2-year fixed-rate options available with a product fee of £595, and options up to both 75% and 85% LTV.
Rates start at 3.04% fixed for 2-years and again, the products come with cashback upon completion between £250 and £750 dependent on the EPC rating of the property. These owner-occupier products are available on a capital and interest-only basis.
Foundation said the products were aimed at those borrowers seeking to purchase more energy-efficient homes and were also designed to incentivise borrowers to improve the EPC ratings of their properties.
George Gee, commercial director at Foundation Home Loans, said: “We want to encourage and reward those homeowners and investors who make the conscious choice to buy energy-efficient properties, or improve those which they currently own.
“Energy efficiency amongst UK housing stock is only likely to become more central to the government’s green agenda. As one of the first specialist lenders to enter the ‘Green’ mortgage market, we remain committed to innovating ‘Green’ product options for both landlords and owner-occupier borrowers.
“This new range offers cashback to help to meet the costs of maintaining energy-efficient properties, whilst still retaining highly-competitive rates and reduced product fees.
“Although the government regulations currently only affect properties in the private rental sector, our research shows there is a growing demand for ‘Green’ mortgage products amongst owner-occupiers too, and increasing demand from both groups for environmentally-friendly housing stock.”