The Mortgage Works launches new Green Further Advance range

“Buildings are the second largest source of emissions in the UK and even small changes, such as adding insulation to pipes can make a big difference”

The Mortgage Works (TMW) the specialist buy-to-let arm of Nationwide Building Society, is launching a new Green Further Advance mortgage range to support landlords making their properties more sustainable.

A rate of 1.49% will be available for loans of between £2,500 and £15,000 up to a maximum of 75% LTV, with no product fee. Landlords can opt for a two or five-year fixed product, with rates for those making green improvements to their property up to 50% lower than standard further advance rates.

The whole loan must be used to fund a range of sustainable home improvements, including the addition of solar panels, window upgrade/replacement, boiler upgrade, air source heat pumps and electric car charging points.

Current legislation in England and Wales requires buy-to-let properties to have at least an Energy Performance Certificate (EPC) rating of E or above. However, in order to improve the energy efficiency of rental properties, the Department of Business, Energy and Industrial Strategy (BEIS) is leading the ‘Improving the energy performance of privately rented homes’ consultation which is currently looking to increase the EPC requirement to a C rating for all new tenancies by 2025 and for all existing tenancies by 2028.

“As one of the UK’s largest buy-to-let providers, it’s important that we support our landlords in making their properties more sustainable and energy efficient as we, along with Nationwide, continue to play a leading role in helping to tackle climate change.

“Buildings are the second largest source of emissions in the UK and even small changes, such as adding insulation to pipes can make a big difference in helping improve the green credentials of properties. Landlords are required to ensure their properties have at least an EPC E rating, but in future this could be increased to a C rating meaning many will need to make improvements.

“By launching our Green Further Advance with rates significantly lower than our standard range, we hope this will give landlords the push they need to start making those changes.” said Daniel Clinton, head of The Mortgage Works.