Foundation Home Loans has announced the launch of a set of new green fixed rate products for both buy-to-let (BTL) and owner-occupied mortgages.

Rates and cashback for the specialist lender’s ‘Green ABC+’ products will be based on a property’s energy performance rating. 

For BTL landlord borrowers purchasing or remortgaging, Foundation is offering a set of five-year fixed-rate options, starting at 3.14% and available up to 75% LTV with a reduced product fee of 0.5% and a cashback reward between £250 and £750 – dependent on the Energy Performance Certificate (EPC) rating of the property. The lender said it will allow early remortgaging on these BTL products and they are available to individual and limited companies, as well as portfolio and non-portfolio landlords.

For owner-occupier borrowers buying or remortgaging, Foundation is offering a range of two-year fixed rate options available with a product fee of £595, and options up to both 75% and 85% LTV. Rates will start at 3.04% fixed for two years and again, the products come with cashback upon completion between £250 and £750 dependent on the EPC rating of the property.

“We want to encourage and reward those homeowners and investors who make the conscious choice to buy energy-efficient properties, or improve those which they currently own,” said Foundation commercial director, George Gee.

“Energy efficiency amongst UK housing stock is only likely to become more central to the government’s green agenda. As one of the first specialist lenders to enter the ‘green’ mortgage market, we remain committed to innovating ‘green’ product options for both landlords and owner-occupier borrowers. This new range offers cashback to help to meet the costs of maintaining energy-efficient properties, whilst still retaining highly-competitive rates and reduced product fees.

“Although the government regulations currently only affect properties in the private rental sector, our research shows there is a growing demand for ‘green’ mortgage products amongst owner-occupiers too, and increasing demand from both groups for environmentally-friendly housing stock.”

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