West One launches first green second charge mortgage



West One Loans has launched the industry’s first green second charge mortgage for landlords who own properties with an EPC rating between A and C, starting from 5.29%.

Second charge products enable investors to take out a second mortgage on top of a first one, which can be useful if they want to borrow more without remortgaging and therefore incurring early repayment charges on their current deal.

Marie Grundy, managing director, second charge mortgages at West One Loans, said: “As part of West One’s ESG strategy, we have been working on designing a green second charge mortgage for landlords.

“At West One we are always looking at ways to bring more innovative second charge products to market. Although green mortgages are widely available in the BTL market, until now there haven’t been equivalent products available for landlords looking to raise second charge finance on more energy efficient properties. So we are proud to be the first second charge lender in the market to do this.

“Landlords are expected to ensure their properties have an EPC rating of at least C for new tenancies by 2025 and existing tenancies by 2028. We know there will be demand for our second charge green mortgage as landlords can use it to upgrade and retrofit properties that are rated D or below, which applies to many rental homes.”

West One has created a new second charge buy-to-let plan called BTL Plus with rates starting at 5.39%. BTL Plus offers enhanced loan sizes and a competitive range of products for landlords.

The improved loan sizes go up to £350,000 from £250,000 up to 65% LTV, with loans up to £500,000 considered by referral. Loans up to 75% LTV are now available to a maximum £125,000 from £100,000.

Both variable and five-year fixed rate plans have options without early repayment charges and some light adverse credit is acceptable.

The specialist lender is also reducing five-year fixed rates on its Apex 1 plan available to homeowners by up to 1.06%.

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