EPCs at the heart of lending decisions
In recent weeks Elmhurst has identified two separate instances where Mortgage rates will be based on a homes EPC rating. Both Barclays and the Help to Buy scheme in Wales have announced that EPCs and predicted fuel bills will now form part of mortgage calculations.
Elmhurst has recently worked with the LENDERS research project which modelled the link between energy efficiency and household fuel bills and created a calculator to show the cost benefits associated with buying cheaper to run (more energy efficient) homes.
Stuart Fairlie – Technical Director at Elmhurst states “This is just the start of mortgage lenders using the data that exists around EPCs, to make better lending decisions. The Lenders Project suggested the way forward and gave the lending market a concept and tools to offer better deals to consumers. We have always advocated that the fuel bill is a major outgoing for occupiers of homes and this should be used to ensure that consumers can obtain better rates or more money based on other criteria. Barclays and Help to Buy are the first of many to start to roll this out. We encourage home buyers to understand the power of the EPC when making investment decisions.”
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