OneSavings Bank has announced changes to its lending conditions for residential buy-to-let and commercial mortgages through its Kent Reliance and InterBay commercial brands.
This follows the new energy efficiency regulations that are due to come into effect on 1st April, whereby the granting of a new tenancy on any property with an energy performance certificate (EPC) rating of 'F' or 'G' will be unlawful.
For BTL lending, all mortgage offers will now require the acting solicitor to advise borrowers that rental properties must have a minimum EPC rating of E.
Commercial properties that do not meet the minimum standard (E rating) will be referred to a real estate team to review.
A condition will be included – where appropriate – in the formal mortgage offer to ensure that the property receives a rating of 'E' or above within three months of completion.
Adrian Moloney, sales director at OneSavings Bank (pictured above), said: “The new regulations bring added complexities into a highly regulated market, but we want to ensure the new requirements are as straightforward as possible for our broker partners.
“Ensuring that properties are energy efficient is important and a reflection of the market's drive towards professionalisation, however, we wanted to make sure that a low rating didn't necessarily mean landlords would be prohibited from accessing lending.
“Instead, we've introduced proportionate terms into our conditions to raise awareness and act as an incentive for landlords to improve their properties, which will ultimately help them attract tenants.”
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