One of the UK’s largest providers of buy-to-let mortgage products TMW has returned to offering 80% loan-to-value (LTV) mortgage but added a green sting in the tail to the offering.

Until now it, like most other lenders, it had been requiring landlords to provide a 25% deposit via a 75% LTV.

The Mortgage Works (TMW) which is the intermediary platform run by the Nationwide, says the new 80% LTV loans will be for purchases, remortgages and further advances, and include buy-to-let, let-to-buy and limited company landlords.

But the lender has joined other smaller mortgage providers to insist that rental properties must have an EPC rating of C or above.

Until recently, only a clutch of smaller specialist mortgage lenders and building societies had stipulated a minimum EPC rating of C, instead following the current legal minimum of an E rating.

Lenders like TMW are essentially moving ahead of government policy. Ministers last year announced that they intend to bring in a minimum EPC ‘C’ rating for all rented properties by 2030.

Dan Lee

Daniel Lee, Principal Broker at Total Landlord Mortgages, says TMW’s decision to begin once more offering 80% LTV mortgage is a significant vote of confidence in the buy-to-let market after a difficult period during which, for example, many lenders withdrew entirely from HMO mortgage lending.

“The requirement for an EPC C or above is also an indication that TMW is behind the government’s environmental policy agenda and that landlords need to take the green performance of their properties more seriously in the coming months and years,” says Lee.


  1. So what happens if the next time your EPC is done your property is a D? Will they insist you redeem your mortgage?
    It’s all very well tying things to EPCs but until the assessment is fair and accurate this is a complete nonsense.

  2. Banks aren’t doing because they are for the green agenda. They are doing because they don’t want to risk you not being able to pay the mortgage when the regulations say you can’t rent it out.

  3. I wonder if there own offices are actually carbon neutral ? Let alone all their branches ?

    Perhaps they could actually publicize that first , set an example , and then if a property requires upgrade to meet a C, they provide the relevant finance to do so ?
    This would then improve their credentials and viability , create incentive , now that would be progress!

    Would be interesting if they evaluate every mortgage they have on their books perhaps first , that’s not a C , and then provide interest free add on loan to existing mortgages for such upgrades. That’s going green, that’s making a difference .

    Not discriminatory mortgages . By default they are actually creating by a devaluation of all properties that are not C !

    Makes no sense to me .
    Sounds like a boardroom fudge for market positioning.

    I guess next we will also have an emissions test ,and emissions tax on every property, with a special emissions mortgage related product , on each property too ., and lastly I’m sure a congestion charge on houses within a certain distance of city center might be another idea ?

    Who knows 🤦‍♂️🙆‍♂️.

    It seems never a truer saying relevant now! Money literally does grow on trees 🌳 💰 💵

    • It is only natural that business mortgage lenders will wish to ensure that the mortgaged asset will be compliant with EPC legislation.

      My advice to any LL that will be unable to improve to EPC C status is to sell up ASAP.

      Very soon lenders will stop lending for any rental property not at EPC C status.

      It is rarely cost effective to improve to EPC C status.

      LL is better off selling off.

      If I was a LL looking to buy NO way would I buy any property that wasn’t EPC C status.
      The works required to achieve C status can easily be £15000.
      Just not worth it.

      LL should sell these dud properties before it is realised by many that they are DUD!

      Leave these dud rental properties for FTB to buy.

      They won’t be subject to EPC regulations.

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