Skip to content

Call today - 01325 346 328

Call from Overseas - 0044 1325 346 328

Quote Ref: WS1

Customer Login Get Quotes

Compliance with MEES energy efficiency rules needs to be confirmed to BTL lender


The LettingAgentToday website reports that specialist buy to let (BTL) lender OneSavings Bank will require that residential and commercial borrowers prove they conform with the new Minimum Energy Efficiency Standard (MEES) standards that come in to force on April 1st

Borrowers applying to OneSavings Bank - through its InterBay and Kent Reliance brands – will need to supply evidence that there is a minimum EPC rating of E on the property to be purchased.

In some cases, a condition will be included within the formal mortgage offer to ensure that the property receives an E rating or better within three months of mortgage completion.

Adrian Moloney, sales director at OneSavings Bank was quoted as saying: “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.” 

OneSavings Bank is thought to the first lender to link the new energy standards with the granting of buy to let loans.

As we reported in September last year, under the new legislation, a rental property must meet a minimum Energy Performance Certificate rating of E from April 1 when it becomes newly-tenanted; this will extend to all rental properties, irrespective of the tenancy situation, by April 1 2023.