In the UK, new EPC (Energy Performance Certificate) standards for buy-to-let properties are set to be introduced, and it's important for landlords to understand how this will affect remortgaging their property in the future. In this blog post, we'll take a closer look at the incoming EPC standards and what they mean for buy-to-let landlords.
First, let's take a look at what EPCs are and why they're important. EPCs provide a rating for a property's energy efficiency and environmental impact. They're required by law for most properties when they're built, sold or rented, and they're valid for 10 years.
The new EPC standards for buy-to-let properties will be introduced in 2025. From this point onwards, all rental properties in England and Wales will need to have an EPC rating of at least band C to be eligible for a new tenancy or a renewal of an existing tenancy. This is a significant change from the current standards, which only require a rating of band E.
So, what does this mean for landlords looking to remortgage their buy-to-let property?
Well, lenders are likely to start taking EPC ratings into account when considering a remortgage application. Landlords with properties that have a low EPC rating may find it harder to secure a remortgage, or may be offered less favourable terms.
It's also worth noting that improving your property's energy efficiency could have other benefits beyond helping you to secure a remortgage. For example, tenants are increasingly looking for properties with lower energy bills, so improving your EPC rating could help to make your property more attractive to potential tenants.
So, what can landlords do to prepare for the new EPC standards and maximise their chances of securing a remortgage?
One option is to start making improvements to your property's energy efficiency now. This could include things like upgrading insulation, installing double glazing or replacing old boilers with more energy-efficient models.
Another option is to consider a green mortgage. Some lenders offer these types of mortgages to borrowers with energy-efficient properties. The terms of these mortgages can vary, but they often offer lower interest rates or other incentives to borrowers who meet certain energy efficiency criteria.
In conclusion, the new EPC standards for buy-to-let properties are set to be introduced in 2025, and it's important for landlords to understand how this will affect their ability to remortgage their property in the future. By taking steps to improve their property's energy efficiency now, landlords can maximise their chances of securing a remortgage and potentially attract more tenants in the process. Additionally, exploring green mortgage options could provide further benefits for landlords looking to make their buy-to-let property more energy efficient.
Mortgage321 can assist by providing guidance and advice on how to navigate the new EPC standards for buy-to-let properties. We can also help you understand how these standards may impact your ability to remortgage your property and provide solutions to help you meet the new requirements. Our team of experienced mortgage advisors can help you find the right mortgage product to suit your needs and guide you through the entire process. Contact us today to learn more.