Why does my bank need an EPC?

EPCs are only usually required for sales and lettings, or to apply for funding schemes such as the RHI or FIT payments. Sometimes, however, a bank may request an EPC as part of a remortgaging or a loan application.

When a bank requests this, it is usually because the property is either being lent against directly or is being used as collateral for the loan. The bank want the EPC to ensure that the property at least has an E rating – if the rating is below an E, the value is going to be affected because it cannot be legally let without improvements being made or an exemption applied for. This type of situation is now becoming very common so If you want to get your loan or remortgage etc then you will need to get the EPC done and get a good enough rating.

It might seem a little odd, but this process is completely discretionary and something the bank is requiring only. It can be annoying to have to go through this process, but it will at least mean you have a valid EPC on file for the next 10 years, and you won’t need to get a new one should the property be let or sold in future.

What are now noticing also is that a number of lenders when lending for rental purposes are requesting EPCs to be higher than band E and a number now request a minimum of a band D, this is starting to be problematic for some owners of older inefficient properties who are already struggling to achieve this higher banding, we have dealt with landlords who are having to switch lenders at the last minute due to these issues.

What to remember

Remember to always check if you already have an EPC lodged previously against the address – often banks forget to mention that an existing certificate is perfectly acceptable, and clients may end up paying for an EPC which is unnecessary. You can check by visiting epcregister.com

If you need an EPC, you can always get in touch and we will get you booked in straight away! Whatever the reason for your EPC, we will be happy to help and ensure you get the best rating and the swiftest service possible.

At NN Home Energy Surveys we supply residential EPCs throughout Northamptonshire, Milton Keynes and all the surrounding towns and villages. If you’d like to book an appointment please call us on 07851 957628 or use the contact us form.