OneSavings Bank is updating its lending conditions for residential buy-to-let and commercial mortgages ahead of new energy efficiency regulations.
New rules come into force from 1 April that make it illegal for landlords to start new tenancies without the property having and Energy Performance Certificate of ‘E’, or higher.
In response, OneSavings Bank brands Kent Reliance and InterBay will require acting solicitors for all buy-to-let mortgage offers that any properties rented out in the private rented sector must have a minimum EPC rating of E.
For commercial properties, those that do not meet the minimum standard will be referred to OSB’s real estate team to review. Where appropriate, a condition will be included in the formal mortgage offer to ensure that the property receives a rating of ‘E’ or above within three months of completion.
OneSavings Bank sales director Adrian Moloney (pictured) says: “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.”