Foundation Home Loans has brought out a new green mortgage for landlords that offers a discount that progresses proportionally to a property’s energy efficiency.

The ‘Green ABC’ product is available at up to 75% LTV on a two-year variable discount and charges a 2% product fee.

For a building with an energy efficiency rating of C, the discount of 2.60% gives an initial rate of 2.49% and for a property with an energy efficiency rating B, a discount of 2.80% provides an initial rate of 2.29%.

An A rating gives a discount of 3.10%, meaning an initial rate of 1.99%.

Last month, Foundation announced a ‘Green Reward’ five-year remortgage product for landlords at up to 75% LTV.

Foundation commercial director George Gee says: “The better the EPC rating, the bigger the discount, and our aim is to help meet the needs of landlords who want a more energy-efficient property portfolio.

“Not only do these products have excellent rates, but there are no ERCs which will allow landlords a larger degree of flexibility, plus will also allow them to improve the energy efficiencies of those properties further and benefit from the remortgage reward fixed rate options that are available.”