17 May 2026·14 min read

Can You Get a Mortgage on a House with an EPC Rating of F or G?

Yes — mortgages are available on EPC F and G properties, but the lender pool is reduced and the rules are tightening. Here's what you need to know before applying.

Yes, you can get a mortgage on a house with an EPC rating of F or G. For owner-occupiers, most high street lenders will lend on F and G rated properties — but the picture is more restrictive than it used to be, and it is changing. If you are buying to let, the position is more constrained: minimum energy efficiency standards for private rentals now mean an EPC F or G property cannot legally be let in most circumstances without significant improvement work first.

Understanding exactly how lenders treat EPC F and G rated properties — what they will and won't do, and how this has shifted — is essential before you make an offer on a lower-rated property or submit a mortgage application. Getting this wrong can mean a withdrawn mortgage offer late in the buying process, or a buy-to-let investment that cannot legally generate rent.

UK homes rated F or G

Approximately 3% of UK homes carry an EPC rating of F or G, according to MHCLG housing stock analysis — a figure corroborated by Halifax's December 2024 affordability policy announcement

3.5%

Value discount vs EPC D

Nationwide Building Society research found that F and G rated homes are valued approximately 3.5% lower than comparable D rated properties — a direct impact on mortgage loan amounts and resale value

£8,100

Average cost to improve to EPC C

The average cost to improve a property to EPC C is approximately £8,100, according to GOV.UK analysis — though for F and G rated properties the cost is typically higher, averaging around £25,800

The Short Answer

For owner-occupiers, the major high street lenders — including Halifax, Lloyds, Nationwide, NatWest, and Santander — will lend on EPC F and G properties. However, from December 2024 Halifax and Lloyds Banking Group (which includes Halifax, Lloyds Bank, and Bank of Scotland) began factoring EPC ratings into their affordability calculations, meaning F and G rated properties receive a small reduction in the maximum loan amount compared with the same property rated C, D, or E. Nationwide's research shows F and G rated homes trade at a 3.5% discount to comparable D rated properties — evidence that the market is already pricing in the energy efficiency gap, independently of lender policy.

For buy-to-let purchasers, the position is different in kind. Since April 2023, all privately rented properties in England and Wales must have a minimum EPC rating of E for all tenancies. A property rated F or G cannot legally be let under a new tenancy or an existing tenancy in most circumstances — meaning a buy-to-let purchase of an F or G rated property requires improvement works before rental income can be generated.

Our guide to what an EPC rating means when buying or selling covers how ratings are calculated and what they mean in broader terms for buyers and sellers.

How Lenders Actually Assess EPC F and G Properties

Owner-occupier mortgages

Most high street lenders will lend on F and G rated properties for owner-occupiers, but the terms have shifted in response to the energy efficiency agenda.

Halifax — part of Lloyds Banking Group alongside Lloyds Bank and Bank of Scotland — introduced a direct link between EPC rating and affordability calculations from 10 December 2024. According to Halifax's published intermediary criteria, properties rated A or B receive a small increase in the maximum loan amount, properties rated F or G receive a small reduction, and properties rated C, D, or E see no change. Halifax's own example illustrates the practical impact: on a £215,000 property, a buyer could borrow £194,000 with an A or B rating, £191,000 with a C to E rating, or £190,000 with an F or G rating. The difference is modest in this example, but scales with property value.

Nationwide Building Society does not apply the same hard formula, but its research explicitly links EPC rating to property value. As Nationwide's published research states, F and G rated homes are valued approximately 3.5% lower than comparable D rated properties — a 3.5% discount that directly reduces the loan-to-value calculation.

ℹ️Note

The lender landscape on EPC is evolving quickly. Halifax and Lloyds were the first major lenders to formally link EPC to affordability (December 2024), and industry commentary suggests others will follow. If you are buying an F or G rated property, use a mortgage broker who can advise on which lenders will offer the best terms given the specific property — this is an area where the difference between lenders is meaningful and changing.

Buy-to-let mortgages

For buy-to-let, the regulatory picture is more restrictive. The Minimum Energy Efficiency Standards (MEES) require all privately rented properties in England and Wales to have a minimum EPC rating of E. Since April 2023 this applies to all private tenancies — not just new lettings. An F or G rated property cannot legally be let unless a valid exemption applies and has been registered on the PRS Exemptions Register.

Most buy-to-let mortgage lenders follow the regulatory position: they will not lend on F or G rated properties for rental purposes without evidence of a credible improvement plan, or they require the property to achieve at least an E rating before drawdown. Some lenders cap buy-to-let lending on any property below EPC D, in anticipation of proposed future increases to the minimum standard.

The Buy-to-Let MEES Position

The Minimum Energy Efficiency Standards for private rentals currently require a minimum EPC E for all tenancies in England and Wales. This has been in force for new tenancies since April 2018 and for all existing tenancies since April 2023. An F or G rated property cannot legally be let under these regulations unless an exemption applies.

Exemptions exist and are registered on GOV.UK's PRS Exemptions Register. The main grounds for exemption include: where all cost-effective improvements have been made and the property still cannot achieve E; where third-party consent (from a freeholder or listed building authority) cannot be obtained; or where the property is listed and improvements would unacceptably alter its character. Exemptions are time-limited and property-specific.

Proposed increases to the minimum standard — requiring a minimum EPC C for new tenancies from 2028 and all tenancies from 2030 — have been subject to significant policy uncertainty. The government's current position should be verified against the most recent GOV.UK guidance before making any investment decision, as this target has shifted under successive administrations.

What an EPC F or G Property Actually Costs to Improve

The cost of improving an F or G rated property depends heavily on what the current barriers to efficiency are. Properties rated F or G typically have solid wall construction (Victorian or Edwardian era), older heating systems, poor or absent loft insulation, and single-glazed windows. These are the same characteristics that make older period properties — particularly in London, where pre-1919 stock dominates prime central postcodes — harder and more expensive to improve than modern equivalents. Our guide to what factors affect house valuations in London explains how EPC rating increasingly affects both mortgage lending and market value for London's older housing stock.

According to GOV.UK analysis, the average cost to improve a property to EPC C is approximately £8,100. For properties currently rated F or G, the average is significantly higher — around £25,800 — because the baseline is lower and the improvement measures required are more substantial. The typical package for a Victorian property moving from F to D or C:

Solid wall insulation (external or internal)

Most impactful single measure for solid-wall properties; cost varies by property size and wall type. Source: Energy Saving Trust

£8,000–£25,000

Loft insulation (if accessible)

Most cost-effective single measure for most properties. Source: Energy Saving Trust

£300–£700

Double glazing (full house, replacing single glazing)

Significant score improvement where original single glazing remains. Source: Energy Saving Trust

£5,000–£10,000

Gas condensing boiler replacement

Replacement of older inefficient boiler; modest EPC uplift. Source: Energy Saving Trust

£2,000–£4,000

Air source heat pump installation

Largest individual EPC score improvement. Boiler Upgrade Scheme grant of £7,500 available for qualifying homes in England and Wales — verify current rate at GOV.UK/Ofgem before application, as scheme terms updated April 2026

£10,000–£18,000 before grant

Average total cost to reach EPC C (F/G starting point)

GOV.UK analysis. The average cost to improve any property to EPC C is ~£8,100; F/G rated properties require more extensive works

~£25,800

According to Nationwide's published research, installing all recommended energy improvement measures in an F or G rated home would produce an average saving of approximately £1,780 per year on energy bills — making the payback period on a £25,800 investment around 14 years without grant support.

Should You Buy an EPC F or G Property?

Pros

✓Purchase discount: F and G rated properties typically sell at a discount reflecting the EPC rating. Nationwide's research shows F and G rated homes are valued approximately 3.5% lower than comparable D rated properties — meaning a well-priced F or G property can represent genuine value if improvement costs are factored in accurately

✓Character and period stock: the properties most commonly rated F or G are pre-1919 Victorian and Edwardian buildings — often with period features, ceiling heights, and character that modern high-rated properties simply cannot replicate. For buyers who value this character, the EPC rating is a cost to manage rather than a reason to avoid

✓Improvement upside: a property moved from F to C or B through targeted works can achieve a meaningful value uplift on resale, in addition to lower running costs. As more lenders factor EPC into affordability, the premium for better-rated properties is likely to increase over time

✓Grant eligibility: F and G rated properties are the primary target of government retrofit funding schemes. The Boiler Upgrade Scheme (£7,500 for heat pump installation, verify current rate at GOV.UK), the Great British Insulation Scheme, and local authority-administered ECO4 funding can all reduce improvement costs materially

Cons

✗Reduced mortgage options: Halifax and Lloyds Banking Group now apply a small reduction in maximum loan for F and G rated properties. Other lenders may follow. For buyers at the top of their borrowing capacity, this reduction can be the difference between the mortgage being achievable or not

✗Buy-to-let unlettable: an F or G rated property cannot legally be let in most circumstances under the current Minimum Energy Efficiency Standards (minimum E required). Buying an F or G rated property as a buy-to-let investment requires factoring in improvement costs before any rent can be received

✗Higher running costs: the energy bill difference between an F or G rated property and a C rated property is material. Nationwide's research indicates the annual savings from improving F or G to C average approximately £1,780 per year — meaning F and G rated properties cost that much more annually to run

✗Mortgage valuer concerns: a down-valuation is more likely on an F or G rated property, as Nationwide's research confirms a 3.5% market discount. If your agreed purchase price does not reflect the EPC discount, the lender's valuer may apply a reduction. See our guide to [what is a down-valuation and what can you do about it](/blog/what-is-a-down-valuation-uk)

✗Regulatory risk: proposed increases to the minimum EPC standard for rentals (from E to C by 2028/2030) create ongoing regulatory uncertainty for buy-to-let investors. Future proposals for owner-occupier minimum standards add long-term risk to lower-rated properties

How to Approach a Mortgage Application on an EPC F or G Property

Get the current EPC report and check its expiry date — EPCs are valid for 10 years; an expired EPC requires a new assessment before marketing or application

Identify what would move the rating to E, D, or C — commission a new EPC assessment with a retrofit recommendation report from an accredited assessor before approaching lenders

Get improvement quotes from registered installers before making an offer — factor these costs into your offer price rather than treating them as a post-purchase surprise

Use a whole-of-market mortgage broker — the difference between lenders on F and G rated properties is meaningful and changing rapidly; a broker can identify which lenders offer the best terms for your specific property and circumstances

Check grant eligibility early — the Boiler Upgrade Scheme, Great British Insulation Scheme, and ECO4 funding all have eligibility criteria; understanding what's available before exchange informs the true cost of improvement

Build the improvement timeline into your purchase plan — some lenders may require works to be completed within a specified period after completion, or may lend on the improved value rather than the current value

For listed buildings or leasehold properties, check whether improvement works require consent — third-party consent issues can qualify for a MEES exemption but need to be established before committing to an improvement timeline

Frequently Asked Questions

Can you get a mortgage on an EPC F property?

Yes. Most high street lenders including Halifax, Lloyds, Nationwide, NatWest, and Santander will lend on EPC F properties for owner-occupiers. However, Halifax and Lloyds Banking Group now apply a small reduction in the maximum loan amount for F rated properties, and Nationwide's research confirms a market discount of approximately 3.5% for F rated properties versus comparable D rated properties. For buy-to-let, an EPC F property cannot legally be let under current Minimum Energy Efficiency Standards without a valid exemption.

Can you get a mortgage on an EPC G property?

Yes, for owner-occupier purchases. The same lender positions apply as for EPC F — mortgages are available but with a small reduction in maximum loan from lenders who factor EPC into affordability. The market discount for G rated properties follows the same pattern as F. For buy-to-let, an EPC G property cannot legally be let without a valid exemption.

What is the minimum EPC rating for a buy-to-let mortgage?

The regulatory minimum for private rental properties is EPC E. Most buy-to-let lenders require at least an E rating before drawdown, and some now cap buy-to-let lending at EPC D in anticipation of proposed future tightening. An F or G rated property cannot legally be let in most circumstances, making buy-to-let mortgage applications on F or G properties subject to significant lender scrutiny.

Will my mortgage be cheaper with a better EPC rating?

Some lenders offer preferential rates on green mortgages for A and B rated properties. Halifax and Lloyds offer a small increase in maximum loan for A and B rated properties, and some specialist lenders offer rate discounts. However, green mortgage rates from individual lenders are not always competitive with the wider market — so a green mortgage should be assessed against the full market rather than assumed to be cheaper by default.

Does EPC rating affect property value?

Yes. Nationwide Building Society's published research found that F and G rated properties are valued approximately 3.5% lower than comparable D rated properties. A and B rated properties trade at a modest premium of approximately 1.7% above comparable D rated properties. As more lenders formally factor EPC into affordability calculations, this market discount for lower-rated properties is likely to widen over time. Brix&Mortr uses real HM Land Registry sold price data to give buyers an independent view of what properties have actually achieved — including the impact of EPC rating on comparable transactions.

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