The Mortgage Works (TMW) has launched a green further advance deal to help landlords improve the energy efficiency of their properties.

The specialist lender is offering a rate of 1.49 per cent up to a maximum of 75 per cent LTV.

Borrowers can fix for either two years or five years at the same rate, which is around half the cost of some of TMW’s standard further advance deals.

Landlords can borrow up to £15,000 fund a range of sustainable home improvements.

Under current rules, buy-to-let properties must have an energy performance certificate rating of E or above, but ministers have proposed increasing this to C from 2025 for new tenancies and from 2028 for existing rental agreements. 

Landlords taking up one of the new TMW deals must put the whole of the loan towards one of a number of qualifying upgrades.

These include fitting solar panels, switching to energy efficient double or triple-glazed the windows, replacing the boiler, installing air source heat pumps and connecting electric car charging points.

It comes after the government announced the end of the Green Homes Grant.

The Mortgage Works head Daniel Clinton says: “As one of the UK’s largest buy-to-let providers, it’s important that we support our landlords in making their properties more sustainable and energy efficient as we, along with Nationwide, continue to play a leading role in helping to tackle climate change.

“Buildings are the second largest source of emissions in the UK and even small changes, such as adding insulation to pipes can make a big difference in helping improve the green credentials of properties. Landlords are required to ensure their properties have at least an EPC E rating, but in future this could be increased to a C rating meaning many will need to make improvements.

“By launching our Green Further Advance with rates significantly lower than our standard range, we hope this will give landlords the push they need to start making those changes.”