Mortgage Strategy - Halifax includes EPC ratings in maximum lending calculations
Halifax will include energy performance certificate ratings when setting maximum lending amounts for borrowers.
The lender says a home’s energy efficiency “has an impact on energy bills which, in turn, has an impact on disposable income”.
Trinity Financial product and communications director Aaron Strutt says: “Banks and building societies have been using discounted mortgage rates or cash back to incentivise people to make energy efficiency rating improvements, so adjusting the amount applicants can borrow based on the energy performance certificate rating is new.
“The previous government put many lenders under pressure to do more to ensure our housing stock is more energy efficient and they have been working out what to do.
“This is a big move from Halifax that other lenders may well follow. It will cost an absolute fortune to make many properties more energy efficient but there are more options to help secure funding to carry out work.
“Adjusting the mortgage loan size is a new ploy that will force many borrowers to improve their property. Some lenders already insist homes have an A or B rating to access the cheapest deals, but they don’t reduce the amount they can borrow.”
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