Recent research from Paragon Bank suggests that a significant number of landlords may be missing the opportunity to benefit from lower-cost green mortgage products, simply by not updating their property’s Energy Performance Certificate (EPC) after making energy efficiency improvements.
A survey of more than 500 landlords revealed that 57% had carried out energy-saving upgrades but had not commissioned a new EPC assessment afterward. Without updated EPCs, these landlords may be ineligible for preferential mortgage rates offered on properties rated A to C — potentially leaving valuable savings on the table.
Paragon’s Improving Standards and Sustainability in PRS Properties report highlights the missed opportunity: only 28% of landlords said they had reassessed their EPC after making improvements, and while some saw their ratings improve, 14% reported no change.
Further research by Pegasus Insight, also on behalf of Paragon, found that 60% of landlords own at least one property rated ‘D’, while 25% hold assets rated ‘E’, ‘F’, or ‘G’. In fact, nearly half (48%) of the average landlord’s portfolio falls below the proposed Government standard of EPC ‘C’ or higher — a benchmark suggested as part of a recent consultation on private rented sector (PRS) energy standards.
Louisa Sedgwick, Managing Director of Mortgages at Paragon Bank, commented:
“We introduced green mortgages to support landlords investing in more energy-efficient homes by offering preferential rates for EPC A-C properties. These benefits also apply to remortgages, so we strongly encourage landlords to update their EPCs after making improvements — doing so could make them eligible for reduced rates.”
She also noted the pressure of looming legislation:
“Millions of rental properties will need upgrades to meet the proposed EPC standards. However, the current 2030 deadline is unrealistic and risks worsening the shortage of rental homes. We’re urging the Government to implement a phased approach between 2030 and 2035 instead.”
How Signature Specialist Finance Can Help Landlords Benefit from Green Mortgages
Navigating the complexities of green mortgage products and EPC requirements can be challenging for landlords, especially with evolving regulations and mortgage criteria. Signature Specialist Finance offers guidance tailored specifically for landlords looking to maximise their benefits from green mortgage deals.
Our team can help landlords by:
- Accessing specialist lenders who offer competitive green mortgage products designed for properties meeting higher energy efficiency standards.
- Providing bespoke financial solutions and advice for landlords undertaking energy-efficient upgrades or refinancing existing buy-to-let portfolios.
- Supporting landlords through the application process to secure the best mortgage deals, potentially saving significant costs over the loan term.
By partnering with Signature Specialist Finance, landlords can better position themselves to take advantage of the financial incentives available for energy-efficient properties—helping to reduce both their environmental impact and mortgage costs.
Source: Paragon Bank
