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Benefit Financially by Improving your EPC Rating

An EPC Certificate Example

Taking effect in 2025, the Government has proposed a new EPC regulation that will alter the minimum energy efficiency standards. Under this new regulation, it means that your rented property must have a minimum rating of ‘C’ or above to legally rent out. Currently, the minimum rating is ‘E’.

The phased changes will affect new tenancies from 2025 and all existing tenancies from 2028.

This new regulation is being introduced to guarantee that properties are more energy-efficient, which will help towards the Governments net-zero targets in 2050.

How our Lender Can Help

We work closely with Shawbrook Bank who have recently launched a new incentive across their entire buy-to-let and commercial mortgage offering, which means that for any cases submitted with an energy performance certificate rating of ‘C’ or above, you will automatically benefit from a discount on the arrangement fee. This discount applies to both purchase and remortgage cases.

This incentive is to target those landlords who want to make improvements to their properties to make them more efficient and environmentally sound.

With the new regulation coming into force in 2025, now is the perfect time to invest in your properties.

The following discounts will apply to Shawbrook’s standard arrangement fee:

EPC Rating Discount New Arrangement Fee
A 0.60% 0.90%
B 0.45% 1.05%
C 0.25% 1.25%

With an average loan size of £250,000, you could save up to £1,500 on the arrangement fee!

Property Refurbishment loan improving EPC Example:

If your strategy is to purchase properties in need of refurbishment with a property refurbishment bridging loan, why not invest further to bring the EPC rating up to at least a C. The discount you will save on the arrangement fee when refinancing onto a long-term buy to let mortgage could cover the additional funds spent on making those extra changes. This is a win-win situation as not only will you have a more energy-efficient buy-to-let property, you will not need to panic when the new regulations come into force in 2025.

Initial Purchase

Purchase Price                                             £250,000

85% LTV Property Refurbishment loan £212,500

GDV (end value post works)                     £320,000


75% LTV refinance onto a BTL mortgage of £240,000

Post works, if the property now has an EPC rating of A, the new arrangement fee will be 0.15% (a huge saving of £1,440! compared to if the property has a D rating) This saving could cover the cost of the additional works required to increase the EPC rating. Plus Shawbrook will refund the cost of the new EPC up to £100

How can Advocate Finance help you?

Already have a mortgage with Shawbrook Bank and looking to raise further funds?

Not only does this discount apply to new cases, Shawbrook is also offering a partial refund on the arrangement fee if your EPC rating has improved to a rating of A-C, post-completion and you are looking to refinance. To be eligible for this partial refund, please get in touch with your new EPC certificate and we will sort the rest. You will also get the cost of your new EPC certificate (up to the value of £100) refunded back to you.

If you are currently fixed in with an early redemption fee to pay, remember that Shawbrook will waive the early redemption fee when refinancing back to them.

Get in Touch with Us Today

We provide a FREE assessment on all our services. Please contact me directly for more information or use the Get in Touch With Us Today feature at the bottom of this page.

Picture of Megan Parkin

Megan Parkin

Senior Property Finance Adviser | | 01206 544333
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Picture of Megan Parkin

Megan Parkin

Senior Property Finance Adviser | | 01206 544333