Energy Performance Certificates (EPCs) have traditionally been associated with buying and selling properties. But in 2025, lenders are increasingly using EPC ratings to influence mortgage deals, refinancing options, and interest rates—even if you’re not planning to sell.
If you own a property with a low EPC rating, you might face:
Higher mortgage interest rates
Limited refinancing options
Reduced loan-to-value (LTV) offers
Lender-imposed upgrade requirements
This article explains how your EPC impacts your mortgage right now, and what you can do to avoid financial penalties.
Why Lenders Care About EPC Ratings in 2025
With the UK’s net-zero targets and regulatory pressures mounting, mortgage lenders are:
Incentivising energy-efficient properties with better deals
Pricing in the risk of “stranded assets” (inefficient properties that may lose value)
Preparing for green lending standards which could become mandatory in the next few years
➡️ Even if you’re not moving, your lender could scrutinise your EPC during:
Remortgaging applications
Buy-to-let mortgage renewals
Equity release or additional borrowing
➡️ Need an updated EPC for remortgaging? Book an urgent assessment.
How EPC Ratings Influence Mortgage Terms
| EPC Rating | Typical Lender Response |
|---|---|
| A-B | Access to “Green Mortgages” with lower interest rates |
| C | Standard mortgage products, favourable LTV ratios |
| D | Lenders may impose higher rates or limit LTV options |
| E or below | Potential mortgage refusals, conditional offers requiring energy upgrades |
Real-World Impact Examples:
Remortgaging a Band E property? You might face an interest rate 0.5% – 1% higher than an identical Band C property.
Buy-to-let landlords could be restricted from refinancing properties that don’t meet Minimum Energy Efficiency Standards (MEES) compliance.
➡️ Ensure your property is MEES-compliant with EPCrate’s assessments.
The Hidden Catch: EPCs & Future Borrowing Power
Even if your current mortgage is unaffected, future borrowing may be capped:
Lenders are factoring EPC ratings into loan affordability checks
Poor EPC ratings could limit how much equity you can release in future
Energy-inefficient properties may soon face mandatory upgrade clauses as a loan condition
Can You Challenge an EPC That’s Hurting Your Mortgage?
Yes. If your EPC contains:
Default values (e.g., ‘Unknown wall types’)
Overlooked upgrades (e.g., unrecorded insulation or heating improvements)
You can request a corrective EPC assessment.
➡️ Correct EPC data errors and unlock better mortgage terms.
Steps to Protect Your Mortgage Deals with a Better EPC
1. Review Your Current EPC Certificate
Check when it was issued and whether it accurately reflects any property improvements made since.
2. Target High-Impact Upgrades
Focus on:
Loft and cavity wall insulation
Upgrading heating controls
Improving glazing efficiency
Fixing defaults in EPC data inputs
3. Reassess Before Remortgaging
Timing is key. A fresh, accurate EPC before approaching lenders can secure:
Access to Green Mortgage products
Higher loan-to-value offers
Lower long-term borrowing costs
➡️ View EPCrate’s pricing for reassessments and compliance checks.
The Future of EPC-Linked Mortgage Pricing
Financial institutions are aligning with sustainability-linked lending, meaning:
EPC ratings could become a core determinant of mortgage affordability in underwriting
Properties failing to meet minimum energy efficiency thresholds might see:
Higher borrowing costs
Limited market appeal in future sales
Stranded asset risk in property portfolios
Proactive EPC improvements are no longer optional—they are financially strategic.
Conclusion: Don’t Let a Poor EPC Limit Your Financial Flexibility
If you’re considering:
Remortgaging
Expanding your buy-to-let portfolio
Unlocking property equity
your EPC rating will influence your lender’s decision, whether you’re selling or not.
An outdated or inaccurate EPC can cost you thousands in higher rates or limited borrowing options. With EPCrate’s expert assessments, you can ensure your rating reflects your property’s true efficiency—protecting your mortgage deals now and in the future.
➡️ Book a professional EPC assessment today
➡️ Contact us for tailored EPC advice before refinancing
