West One Loans has launched a green second charge mortgage for landlords available on properties with an energy performance certificate rating between A to C.

The specialist lender says this product is set at its lowest ever rate for buy-to-let second mortgages starting from 5.29%.

The firm also debuts a second charge BTL plan called BTL Plus, with rates starting at 5.39%. It says the new scheme offers larger loan sizes across a range of products.

Loan sizes lift to £350,000 from £250,000 at up to 65% LTV, with loans up to £500,000 considered by referral. Loans at up to 75% LTV are now available to a maximum of £125,000 from £100,000.

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

Finally, the lender adds it is reducing five-year fixed rates on its Apex 1 plan available to homeowners by up to 1.06%.

West One Loans, managing director, second charge mortgages Marie Grundy says: “As part of West One’s environmental, social, and governance 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.

“Landlords are expected to ensure their properties have an energy performance certificate 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.”