Energy Performance Certificates (EPCs) have taken centre stage in the UK property and mortgage market over the last few years. What began as a simple energy-efficiency document is now influencing lending decisions, mortgage eligibility, remortgaging opportunities, and even property values. With the government pushing for greener homes and businesses, mortgage lenders are increasingly factoring EPC ratings into their risk assessments.
For buyers, landlords, and commercial property owners, understanding the connection between EPC and mortgages is becoming essential. This article breaks down how EPC ratings impact mortgage lending, why lenders are tightening energy-efficiency requirements, and what the rise of green mortgages means for the future.
Traditionally, EPCs served as an informational guide for buyers and tenants. Nowadays, lenders are using these ratings in a more strategic way. A poorly rated property—particularly those with an EPC of F or G—may be seen as higher risk for lenders because:
They cost more to heat
They may require expensive upgrades
They may face compliance issues under new EPC regulations 2025 commercial property
They may become harder to sell or let in the future
Due to these risks, mortgage providers are integrating EPC scores into their lending criteria. In some cases, lenders are reluctant to approve mortgages for low-rated properties unless buyers commit to improving the rating after purchase.
Although there is no single nationwide rule yet, many lenders set internal EPC standards. The trend is clear: the lower the EPC, the tougher the mortgage approval.
Most mainstream lenders prefer properties with a minimum EPC rating of E or above. For lower-rated homes:
You may face higher interest rates
Mortgage approval may be slower or more complex
Some lenders may reject the application unless improvements are planned
This makes the EPC rating a critical factor for buyers and homeowners considering improvements or remortgaging.
Commercial property is even more tightly regulated. Under the minimum EPC rating for commercial property rules, non-domestic buildings must have a minimum EPC rating of E to be leased or sold. The government has also proposed a raised minimum rating of C by 2027 and B by 2030.
This directly affects commercial mortgage lending:
Lenders may refuse loans for F or G rated commercial buildings
Revaluations may be lower for energy-inefficient buildings
Borrowers may need to show a plan (and budget) for upgrades
Some lenders ask for proof that the property will meet new EPC regulations 2025 commercial property
As a result, commercial landlords—especially those with older buildings—must take EPC planning seriously to maintain both legal compliance and mortgage eligibility.
One of the biggest developments in property finance is the introduction of green mortgages UK. These specialised mortgage products reward buyers for choosing energy-efficient homes or improving the EPC rating after purchase.
A green mortgage offers better rates or incentives for homes with a good EPC rating (usually A, B, or C). Benefits include:
Lower interest rates
Cashback incentives
Higher borrowing limits
Preferential remortgage options
For commercial borrowers, similar products exist under the label of “sustainable lending” or “green commercial financing,” where lenders support energy-saving upgrades through structured loans.
With lenders pushing toward risk reduction and sustainable portfolios, green mortgages are expected to grow significantly over the next decade.
Remortgaging a property gives homeowners or investors an opportunity to benefit from improved EPC scores. Lenders view higher EPC ratings as a sign of lower running costs and better long-term value.
You may qualify for:
Lower interest rates
Access to green mortgage products
Higher property valuations
More favourable lending terms
You may face:
Higher interest rates
Limited choice of lenders
Reduced borrowing power
Delays in approval
This is pushing many property owners to upgrade insulation, heating systems, or lighting before applying for a remortgage.
With environmental rules tightening and energy costs rising, EPC ratings have become a key market driver. Properties with poor EPC ratings are already seeing:
Reduced buyer demand
Slower sales
Lower valuations
Higher mortgage costs
Meanwhile, homes with stronger EPC ratings (A–C) are becoming more attractive to lenders and buyers alike.
This trend is highly visible in areas like Derby, where demand for energy-efficient homes is rising. Services like energy performance certificate Derby and EPC certificate Derby are becoming essential as local buyers and landlords aim to stay compliant and secure better lending opportunities.
Since lenders are becoming stricter, both residential and commercial property owners must plan ahead.
If your property is close to the lower end (E, F, or G), consider upgrading before applying for a mortgage.
Popular EPC-boosting upgrades include:
Loft and cavity wall insulation
Upgraded heating systems
LED lighting (for commercial properties)
Double or triple glazing
Solar panels
Lenders often request the latest EPC when processing a mortgage or remortgage.
Achieving a C rating unlocks:
More lenders
Better mortgage terms
Eligibility for green mortgages
Especially for commercial landlords — the upcoming EPC regulations commercial property deadlines may impact financing and long-term asset value.
EPC ratings are no longer just a formality—they are a key financial factor for buyers, commercial property owners, and investors. With stricter regulations and the rise of green mortgages, lenders are steering the property market toward energy-efficient standards.
Understanding the link between EPC and mortgages can help buyers secure better deals, landlords remain compliant, and investors protect the long-term value of their assets. Whether you own a residential home or a commercial unit, now is the time to review your EPC rating and plan ahead for the changing mortgage landscape.
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