Foundation Home Loans has launched a new ‘Green Reward’ product for landlords.

The intermediary-only specialist lender revealed the five-year fixed-rate mortgage for landlord borrowers is available on a remortgage-only basis.

The product applies to private rental sector properties which have an Energy Performance Certificate (EPC) rating of ‘C’ or above – dated within the last 12 months, except for listed properties which are not eligible.

For borrowers that qualify, Foundation confirmed it is offering a 3.75% rate up to 75% LTV, with £750 cash back on completion plus a reduced fee of 0.75%.

The lender suggested its product could act as a “catalyst” to support the reduction of the carbon footprint from UK residential properties.

Foundation is also hoping the product can raise awareness around initiatives currently available to support this aim, such as the government’s Green Homes Initiative, which is available to landlords and offers grants to help them implement energy-efficient upgrades to their properties. This initiative was recently extended for a further year and is now available until the end of March 2022.

“This new ‘Green Reward’ remortgage exclusively for landlord borrowers – one of the few on offer within the specialist mortgage market – has been designed to support those landlords who have made environmentally-friendly choices with their properties,” said Foundation commercial director, George Gee.

“There has already been a real movement to increase the EPC ratings of rental properties, but we’d like to reward landlords who make further progress. Once landlords have actively improved the energy efficiency of their properties, we will provide them with access to a product that delivers a very competitive rate, with a reduced fee and a generous cash back which they may wish to use to help offset the costs of the improvements.

“Landlords can achieve a number of positives here, making use of the Government grants available, upgrading their properties, creating more energy-efficient homes, while also potentially cutting their tenants’ energy bills.”

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