OneSavings Bank, trading under Kent Reliance and InterBay for Buy to Let, is one of the first lenders to include in its criteria compliance under Minimum Energy Efficiency Standards (MEES) rules.
All new Buy to Let mortgage applications must prove the property which security is being taken over has a minimum efficiency rating of E or an offer condition will be added to make it conditional on the property being brought up to an E rating or better within 3 months.
Under new MEES rules as of the 1st of April a new tenancy can only be granted if the home has a minimum efficiency rating of E and by April 2020 all rental property must comply with the minimum.
Sales director of OneSavings Bank, Adrian Moloney, 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.”
“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.”