Help needed EPC rating F

[RuthD2024]

Hi everyone.
So I’m currently looking at a property which has as a EPC rating F

were still trying to get a mortgage DIP but they just said no because the EPC isn’t C or above …

the property is an older farm house. So regardless of the current EPC. we would be updating the house.

but by researching random house on right move and putting in their postcodes on the government’s website no house in my town will pass as nothing is rated c or above

has anyone currently had an issue with this?

we plan to go ahead with our level 3 survey and hope this may help the mortgage company understand that the house isn’t going to fall down any time soon

also the is a property for us to live in and not to ever rent out.

any help is greatly appreciated thank you

Try a different provider? Are you ism an adviser?

There are some lenders who are becoming particularly risk adverse and insisting on this. They may state it’s an environmental policy, but it could also be because a law has been hanging around waiting to pass in parliament that says all rentals must be an EPC from around 2028, iirc. They keep sitting on it, but for lenders it’s a future risk.

But they are the exception rather than the rule.

Speak to a mortgage broker and ask them to find you a lender who doesn’t have this policy in place.

If that fails (unlikely), post in Your Old House Uk, Repair and Conservation on Facebook.

We have a mortgage broker who’s got us a mortgage but now seems to think won’t accept us because epc came back f

Doesn’t sound like a very good broker to me. Luckily there are hundreds you can chose from.

Hi, yeah so I’ve been researching an awful lot the last 24 hours.

it’s so confusing as we’re not looking to rent the property out. It’s for us to live in.

and the epc would naturally go up when we lived in it as the property needs works.

but mortgage might not be accept due to the current epc rating f.

so unless the owner was willing to do all the work necessary to get it up to a c before we purchased it I don’t see any other way round :(

He seems to be very good. My husband is a director of his business also so this seems to be risky in mortgage terms also

They don’t want to give you money because they assume that at some point in the future, you might want to rent it out, or governments bring in a policy that make it an insurance risk.

Just find a better mortgage broker who knows which banks are currently not doing this.

We bought a house with an EPC rating of F just a couple of months ago and had no issue getting a mortgage with Natwest

I'd think twice about buying an F anyway because of the amount of work that would need doing to it to bring it up to standard.

Why would you go ahead with an expensive survey without finding a lender that is a) willing to lend on that type of property and b) takes into account your special employment circumstances ?

Surely get the mortgage sorted first, because if you can't find anyone the level 3 survey is wasted money.

EPCs are a bit of a con really. They don't tell you much more than you should be able to tell for yourself.
Our attached neighbours have the same heating and insulation as we do, no difference, we've better low-energy lighting even. But they've just scored 57 a D, and we scored 51 (a few weeks ago) an E. It just so happens theirs is newly up for sale, but ours isn't. What a surprise! :D
Find a different mortgage broker.

I just checked with First Direct who we got an Agreement in Principle from last night (because they didn't send it to us), they currently do not have a policy of refusing to lend on houses with low EPCs.

I didn't realise this was in force yet, after warning people on here it was coming last year and being called a conspiracy theorist.

Anyway, HSBC updated their guidance on 15th April this year:

"If the property you want to buy has an EPC below what we might expect and little room to improve it with recommended measures, you could find your application is rejected."

https://www.hsbc.co.uk/mortgages/can-a-low-epc-rating-affect-your-mortgage-application/

In a few years it will be C or above, then B etc. Slowly boiling the frog. Keep that in mind for low EPC grades as getting a new mortgage deal when your fix ends might prove more difficult as time goes by.

Dafuq?!

HSBC own First Direct who literally just told me they don't have a policy of not lending to energy efficient homes. I'm relying on them for a mortgage for a Victorian house!

And I remember those posts, and I believed them.

I would be shocked to hear that their Estate Agent recommended an EPC assessor who likes to flatter buyers.

Surely not...!

Is your broker qualified as a whole market broker?
If not you might not be getting the rounded objective advice you need.

But, do you want to take on an F rated farmhouse? The heating bill is usually a second mortgage unless you like wearing your coat indoors in winter.
I know epc's are a very blunt tool in terms of assessing the performance of a house, but f is still a reasonable indication it'll be costly to run/do up.
I daresay you've thought this through, but you never know, just asking.

This will literally make hundreds of houses unmortgageable they keep raising the EPC requirements as you suggest.

Listed houses cant just whack in DG, old houses cant suddenly get cavity walls, solar/ashp cant just be installed willy nilly if theres no garden space, listed buildings etc.

I get that lenders would be reluctant to lend of an F or G as it would require a lot of work to get it up to spec, but they cant keep raising it, it's impossible and would impact too many people. Fair enough if they do it for BTL mortgages but they cant just do it for everyone.

The farm house runs on oil. Which for us isn’t an issue as we currently rent a house. Semi rural with a bulk gas tank in the garden. And it works out so much cheaper than mains gas. We top ours up once a year at just short of £400 for the year … our rental as an epc of E so it’s not to far away and our house is quite warm.

it will be a bit of work but nothing we’re scared of. Especially when most of our friends are in the trades so it won’t be full cost we need to pay either.

I’ve just enquired with another mortgage broker to compare them off each other. Sonething tells me he doesn’t have the full field of mortgages below him. So waiting to hear for a second opinion

I believe some mortgages have kicked in since April 2024. As from 2030 a new mortgage is suitable on properties with EPC C or above or so we’ve been told.

This was our thought also. 60% of English houses have ratings of D or below. So basically in 6 years if your house isn’t up to scratch it’s not mortgageable.

I don’t believe that for one second.

yeah okay go green Britain but at what cost to homeowners??

From the Govt EPC info website:
"For properties in England and Wales:

• the average energy rating is D
• the average energy score is 60"

Gonna be lots of folk without the ability to get a mortgage?

That’s what we have been saying all day! Unless you have a cash purchase no one will be able to buy a house

I think you just need a different broker op... Think you've got the rest covered!

Mortgage brokers are not all equal, make sure they have professional indemnity to advise on the whole market and are accredited with the financial conduct authority.

That sounds like it’s going to leave a lot of homes unmortgageable 😬(worried about ever moving from our house now…)

Just pull a wind mill in the garden and solar panels on the roof. You’ll be fine then 😂