OneSavings Bank revises lending policy ahead of energy efficiency changes

Ryan Bembridge

March 21, 2018

OneSavings Bank, owner of Kent Reliance and InterBay Commercial, has made changes to adapt to energy efficiency rules affecting the market on 1 April.

Buy-to-let offers now require the acting solicitor to advise the borrower that any properties rented out in the private rented sector must have a minimum Energy Performance Certificate rating of E.

Meanwhile with commercial developments properties that don’t meet an E rating will be referred to OneSavings Bank’s real estate team to review. Where appropriate, a condition will be included in the formal mortgage offer to ensure that the property receives at least a rating of ‘E’ within three months of completion.

Adrian Moloney (picture), sales director at OneSavings Bank, said: “The new regulations bring added complexities into a highly regulated market, but we want to ensure the new requirements are as straightforward as possible for our broker partners.

“Ensuring that properties are energy efficient is important and a reflection of the market’s drive towards professionalisation; however, we wanted to make sure that a low rating didn’t necessarily mean landlords would be prohibited from accessing lending.

“Instead, we’ve introduced proportionate terms into our conditions to raise awareness and act as an incentive for landlords to improve their properties, which will ultimately help them attract tenants.”

From 1 April, it will be unlawful to grant a new tenancy on any residential or commercial property with an energy performance certificate rating of ‘F’ or ’G’.

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