The Impact of Energy Performance on Mortgage Lending has become more apparent than in times gone by. In recent years, the focus on environmental sustainability has sharply increased, leading to significant changes in various sectors, including real estate and mortgage lending. One key aspect that has gained prominence is the Energy Performance Certificate (EPC) rating of a property. As a Royal Institution of Chartered Surveyors (RICS) building surveyor and energy performance specialist, I’ve observed firsthand the profound impact that EPC ratings can have on mortgage lending costs in the UK. I have dealt with clients who have commissioned one of our building surveys and they have later discovered that their borrowing costs are higher due to the EPC rating of the property.

Understanding EPC Ratings

EPCs rate properties on a scale from A (most efficient) to G (least efficient), providing a measure of a building’s overall energy efficiency and carbon emissions. These ratings are crucial not only for buyers and sellers but also for lenders who increasingly factor them into their loan assessments.

EPC Ratings and Mortgage Lending

Recent shifts in the lending landscape suggest that properties with higher EPC ratings often benefit from more favourable mortgage terms. Lenders are increasingly viewing energy efficiency as indicative of lower financial risk. Properties with poor ratings (F or G) can be subject to higher interest rates or even outright rejection for financing due to the perceived higher risk and potential future costs related to necessary improvements.

A property’s energy efficiency impacts mortgage lending in two primary ways:

  1. Risk Assessment: Lenders perceive energy-efficient homes as lower-risk investments. Homes with higher EPC ratings typically have lower running costs, making them more affordable for homeowners and reducing the likelihood of default.
  2. Future-proofing Investment: Properties with higher EPC ratings are considered to be better future-proofed against regulatory changes. With the UK government’s increased focus on climate change, future regulations could make upgrading less efficient homes mandatory, potentially disrupting the property’s marketability and value.

We cover locations all across Cornwall, surveying properties in the rural towns of Bodmin, Truro & St Austell as well as the more iconic coastal locations such as Penzance, St Ives, Mousehole.  

Role of RICS Building Surveyors and Energy Performance Specialists

As RICS building surveyors, we are uniquely positioned to assist both lenders and borrowers in navigating these complexities. Our expertise in assessing and improving the energy performance of buildings can be instrumental in several ways:

  • Pre-purchase Surveys: We conduct detailed surveys that include an assessment of the property’s current energy performance. This not only helps in understanding the potential improvements that can be made but also in forecasting the costs and savings involved, aiding in informed decision-making.
  • Energy Improvement Recommendations: By identifying specific areas where energy performance can be enhanced, we help property owners unlock potential savings and improve their EPC ratings. This could include anything from upgrading insulation to installing more efficient heating systems. These can be identified through our Energy Services.
  • Regular Updates and Compliance: Keeping abreast of the latest regulations and ensuring that properties meet or exceed these standards is vital. As specialists, we ensure that properties are not only compliant but optimized for both current and future standards.


In conclusion, the role of EPC ratings in shaping mortgage lending practices is becoming increasingly significant in the UK’s housing market. As RICS building surveyors and energy performance specialists, we play a critical role in this evolving landscape. By guiding both lenders and borrowers through the intricacies of energy performance, we help mitigate risks, enhance property value, and contribute to broader environmental sustainability goals.

This understanding and strategic improvement of property energy efficiency not only benefit individual property owners but also support the larger financial and environmental framework within the UK.

If you are purchasing the property for buy to let purposes then you may also wish to seek advice from a regulated letting agent such as RDR Estates.

Take a look at any existing EPC certificates for free at this link Find an energy certificate – GOV.UK (