Most private rentals in England and Wales will need to reach EPC C by 1 October 2030 and the question for landlords is not necessarily whether to upgrade but how to pay for it.
The January 2026 Warm Homes Plan gave the sector a single, fixed date to work towards. Around three million privately rented homes currently sit at D or below. That makes this one of the biggest capital-raising exercises the buy-to-let market has seen and the landlords who line up their funding early will get the best terms.
This guide sets out what the work is likely to cost, the grant funding worth claiming first and the four main ways to finance the rest.
Size the bill before you choose the finance
How much you need to raise depends on where each property starts, how it’s built and what’s already been done to it. Landlords are expected to spend up to £10,000 per property (or 10% of its value, if lower), so that figure is a sensible upper budget for most lets.
Starting point | Typical works | Rough budget |
EPC D, standard construction | Loft and cavity wall insulation, LED lighting, draught-proofing | A few thousand pounds |
EPC E, or solid-wall property | External or internal wall insulation, new glazing, possibly a heating upgrade | Close to, or above, £10,000 |
Off-gas, rural or non-standard construction | Fabric upgrades plus a heating system replacement | The highest cost band |
A current EPC assessment and a couple of installer quotes will turn these ranges into a real number. That number, set against your equity and your current mortgage deal, is what decides which funding route makes sense.
Start with grant funding
Before borrowing anything, check what you can claim. Every pound of grant is a pound you don’t need to raise against the property.
- Boiler Upgrade Scheme: up to £7,500 towards a heat pump, which can cover much of the cost of the most expensive single upgrade.
- Warm Homes Loans: government-backed funding for energy efficiency improvements under the Warm Homes Plan.
Grant funding sits outside the £10,000 landlord spend figure, so it adds to what you can put into a property rather than replacing your own contribution. For higher-cost properties, the most efficient approach is usually to stack grants first, then finance the balance using one of the routes below.
Four ways to finance the work
For most landlords, an EPC upgrade is a borrowing decision rather than a cash purchase. These are the four main routes, starting with the simplest.
- A further advance on your existing mortgage
A further advance lets you borrow an extra sum from your current lender, secured on the same property, without replacing the whole mortgage. Pricing is often close to your existing rate and because the lender already knows you and the property, the process is usually quicker and cheaper than a full remortgage.
Best for: landlords with equity in the property who are part-way through a fixed rate they want to keep.
Worth knowing: a number of buy-to-let lenders now offer further advances specifically for energy efficiency works, sometimes at preferential rates. You’ll still need to pass the lender’s affordability and rental cover checks on the higher balance and you’re limited to what your current lender offers.
- Green buy-to-let mortgages
Green BTL products reward better-rated properties with a lower rate or cashback. Some are available for properties already at C or above; others are designed for landlords raising money to carry out the improvements.
Best for: landlords refinancing a property that’s already compliant, or raising capital specifically for retrofit works.
Worth knowing: criteria and discounts vary widely from lender to lender, and the best deal isn’t always the headline rate. This is where a specialist mortgage broker can assist, by matching the property and the planned works to the right product.
- Remortgaging to release capital
If a further advance isn’t available or doesn’t compete, a full remortgage with capital raising for energy efficiency works is the next step. It gives you access to the whole market rather than a single lender’s terms.
Best for: landlords approaching the end of a fixed-rate deal.
Worth knowing: timing matters. Remortgaging at the natural end of a fixed term avoids early repayment charges, which can easily wipe out the benefit of a better rate. If your fix ends well before 2030, it’s worth building the EPC works into that refinance now.
- Refurbishment bridging finance
Refurbishment bridging funds the purchase and the improvement works in a single short-term facility. Once the works are complete and the new EPC is issued, the loan is refinanced onto a standard buy-to-let mortgage, often at a better rate thanks to the improved rating.
Best for: landlords buying a low-rated property (at auction, for example) with a retrofit plan already in place, or anyone who needs works finished quickly before a tenancy renewal.
Worth knowing: bridging costs more than a further advance or remortgage and it relies on a clear exit. Lenders will want to see a realistic schedule of works and confidence that the finished property will support the long-term mortgage. For portfolio landlords working to a deadline, the speed and flexibility can outweigh the cost.
Which route fits your situation?
The right option comes down to three things: how much equity you have, where you are in your current deal, and how quickly the work needs to happen.
Route | Relative cost | Speed | Suits you if… |
Further advance | Low | Fast | You have equity and want to keep your current fixed rate |
Green BTL mortgage | Low (with discount or cashback) | Moderate | You’re refinancing and the property is, or will be, EPC C or above |
Remortgage with capital raise | Low to moderate | Moderate | Your fixed rate is ending and you want the whole market |
Refurbishment bridging | Higher | Fast | You’re buying a low-rated property or working to a tight deadline |
Portfolio landlords: build a funding plan, property by property
With more than a handful of properties, a single blanket approach rarely works. Some lets will need a small spend; others will need the full budget. The finance should reflect that.
- Audit the portfolio. For each property, note the current EPC band, the likely works and a realistic cost.
- Map your remortgage dates. List when each fixed rate ends and any early repayment charges in the meantime.
- Match each property to a route. Use further advances for properties mid-deal with equity, fold works into remortgages as fixes expire and keep bridging for acquisitions or urgent jobs.
- Spread the capital raising. Phasing the borrowing across refinance dates between now and 2030 avoids raising everything at once and keeps early repayment charges to a minimum.
Done well, this turns a single large bill into a series of manageable, well-priced borrowing decisions.
Why arranging finance early pays off
Four years sounds like plenty of time, but retrofit projects take months to assess, quote and schedule. Demand for installers and assessors is expected to climb sharply from 2028 onwards, pushing up both prices and waiting times.
Starting now brings three financial advantages. You pay today’s prices for the works, you can line borrowing up with your natural remortgage dates instead of paying to exit a deal early and an upgraded property may qualify for green mortgage pricing sooner. Landlords who leave it until 2029 will be competing for contractors and lender capacity at the same time as everyone else.
Frequently asked questions
Can I borrow specifically to pay for energy efficiency works? Yes. Many buy-to-let lenders offer further advances or capital raising earmarked for energy efficiency improvements and some price these more favourably than standard borrowing.
How much should I plan to borrow? Start with a current EPC assessment and installer quotes, then subtract any grant funding you’re eligible for. For most properties, the £10,000 landlord spend figure is a sensible ceiling for budgeting.
Do grants reduce what I need to borrow? Yes. Grants such as the Boiler Upgrade Scheme (up to £7,500 towards a heat pump) and Warm Homes Loans sit outside the £10,000 landlord spend figure, so stacking them with your own funding can significantly reduce the amount you need to raise.
I’m in the middle of a fixed rate. What are my options? A further advance from your current lender is usually the simplest route, as it avoids early repayment charges on your existing mortgage. If your fix ends before 2030, you could also wait and fold the works into your remortgage.
Will improving my EPC help me get a better mortgage rate? It can. Green buy-to-let products offer lower rates or cashback for properties rated C or above, so an upgrade may pay you back through cheaper borrowing as well as a compliant property.
Is refurbishment bridging worth the extra cost? It depends on your timeline. Bridging is more expensive than a further advance or remortgage, but if you’re buying a low-rated property or need works done quickly, its speed can make it the better option. You’ll need a clear plan for refinancing onto a standard buy-to-let mortgage once the works are finished.
Should I start now, or wait closer to 2030? Start now. Earlier action means lower contractor prices, more time to line up borrowing with your remortgage dates and less competition for installers as the deadline approaches.
Talk to a specialist
Whether you’re funding a single upgrade or planning finance across a whole portfolio, speak to a specialist about which route fits your equity, your current deals and your timeline.
At 3mc, we have a team of expert advisers who can discuss all your mortgage requirements. If you would like to discuss your options, give the 3mc team a call on 0161 962 7800.
All calls are recorded for training and monitoring purposes. 3mc for intermediaries only.
*Your home may be repossessed if you do not keep up repayments on your mortgage. 3mc (UK) Ltd is authorised and regulated by the Financial Conduct Authority and is entered on the Financial Services Register https://register.fca.org.uk/s/ under reference 302992. Please note: The FCA do not regulate Business Buy to Let Mortgages.