Foundation Home Loans launches “Green Reward” remortgage for homeowners

The specialist-only middleman lender said the five-year fixed rate mortgage for homeowner borrowers was only available for private rental sector properties that had an Energy Performance Certificate (EPC) of ‘C’ or higher – dated within the last 12 months, except for listed properties that are not eligible.

For those who qualify, Foundation offers a rate of 3.75% up to 75% LTV, with a £ 750 discount at the end plus a reduced fee of 0.75%.

The lender hopes the remortgage product will act as a catalyst to support the reduction of the carbon footprint of UK residential properties.

But he also hopes to publicize the various initiatives currently available to support this goal, such as the government’s “Green Homes Initiative” which is available to homeowners and offers grants to help them implement energy efficiency improvements to their properties.

The government initiative was recently extended for one year and is available until the end of March 2022.

All rental properties must currently have an EPC rating of “E” or higher, but the Foundation urges landlords to use the government program to upgrade the rating to “C” and above, in order to make the property eligible for. its Green Reward Mortgage Product.

The product is designed to reward homeowners who have paid to make improvements and the Foundation does not specify what energy efficiency requirements must be implemented in each home in order for them to achieve a “C” rating.

The Green Reward remortgage is also available on an “early remortgage” basis so that homeowners do not have to wait the usual six months before remortgage an improved property to the lender.

George Gee, Business Director of Foundation Home Loans, said: “This new ‘Green Reward’ mortgage exclusively for homeowner borrowers – one of the few available in the specialty mortgage market – was designed to support homeowners who have made choice with their properties.

“There has already been a real movement to increase EPC ratings for rental properties, but we want to reward homeowners who are still making progress.

“Once homeowners actively improve the energy efficiency of their properties, we will provide them with access to a product that offers a very competitive price, with reduced fees and a generous cash back that they can use to help. to offset the costs of the improvements.

“Homeowners can achieve a number of positive results here, using available government grants, improving their properties, creating more energy efficient homes, while potentially lowering their tenants’ energy bills. “

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