Making ‘Green Mortgages’ work in the real (buy-to-let) world

The transition to a more energy-efficient housing market is one of the most significant long-term shifts facing our industry, and the private rental sector (PR) and buy-to-let has certainly been at the forefront of that. 

Green mortgages are an important part of that story, but the real challenge lies not in defining what makes a mortgage ‘green’, but in understanding how we help advisers and their landlord borrower clients turn ambition into action.

Retrofit is the bridge between aspiration and delivery. Yet, for most landlords, the road to achieving higher EPC ratings is a complex-balancing cost, dealing with availability of trades, and also the speed at which regulation is evolving. 

This is where lenders and advisers can make a real difference, by offering practical solutions and clearer pathways to improvement rather than focusing purely on the end goal of EPC A or B or C.

At Fleet, we’ve approached this challenge by listening carefully to our adviser partners and their landlord customers. 

For example, we launched a £1,000 green cashback initiative to help with the costs of moving properties to EPC A-C, and as a result we’ve paid out on 144 separate accounts, directly rewarding those who have invested in improving their properties’ energy performance. 

It’s a straightforward incentive, but one that reinforces the positive steps landlords are already taking.

Alongside this, our specific EPC A–C product range helps us recognise and support those properties that are already at this level with lower rates, while giving us valuable insight into how energy efficiency is influencing landlord behaviour and mortgage choice. 

Advisers have a vital role to play in this transition. As more landlords begin to plan for retrofit, advisers are uniquely placed to guide conversations about the long-term value of improvements, how to fund them, and how they can future-proof portfolios against incoming regulatory requirements. 

Ultimately, progress towards greener housing will come from embedding sustainability into everyday lending conversations. That means recognising small steps, rewarding those who act early, and providing the advice and lending structures that make it possible.

For Fleet, our goal is simple: to make green lending both meaningful and practical-for advisers, for landlords, and for the market as a whole.

https://www.fleetmortgages.co.uk/ 

 

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