Can I remortgage if I have solar panels?

Yes, in most cases you can remortgage with solar panels. If you own the panels outright, most mainstream lenders will accept your application. If the panels are leased or part of a rent-a-roof scheme, fewer lenders may be available, but options still exist.

Do solar panels add value to my property?

Owned solar panels can add value to your property, particularly if they are in good condition and generate meaningful energy savings. However, leased panels may not add value and could potentially make the property harder to sell or remortgage.

Will a leased solar panel agreement affect my remortgage?

A leased agreement can affect your remortgage as some lenders are cautious about properties with third-party charges or long-term lease obligations on the roof. A specialist broker can help identify lenders who accept these arrangements.

Do I need an MCS certificate to remortgage?

Most lenders will require an MCS certificate as part of the remortgage process. This certificate confirms that the solar panel installation meets industry standards and was carried out by an accredited installer.

Can I remortgage if my solar panels are on a rent-a-roof scheme?

It is possible to remortgage with a rent-a-roof scheme, but your options may be more limited. Some specialist lenders accept these arrangements, and a broker experienced in this area can help you find suitable deals.

Will my feed-in tariff be affected by remortgaging?

Remortgaging should not affect your feed-in tariff payments. The FiT is registered to the installation, not the mortgage lender. However, you should notify your FiT provider of any change in circumstances.

Do I need to tell my lender about solar panels?

Yes, you should always disclose the presence of solar panels to your lender. Failure to do so could be considered a material omission and could cause problems with your application or your mortgage terms.

Can I buy out my solar panel lease before remortgaging?

In many cases, yes. Buying out a solar panel lease can simplify the remortgage process by removing the third-party interest. The cost of buying out will depend on the terms of your agreement and the remaining lease period.

How do solar panels affect a property valuation?

Owned solar panels may be viewed positively by valuers as an energy-efficient improvement. Leased panels may be viewed more cautiously, and the valuer will consider the impact of the lease terms on the property's marketability.

Are there specialist lenders for properties with solar panels?

Yes, some lenders specialise in or have more flexible criteria for properties with solar panels, including those with lease arrangements. A specialist broker can help you access these lenders.

Will solar panels affect my mortgage interest rate?

Owned solar panels typically do not affect your mortgage interest rate. However, if your panels are leased and restrict your choice of lender, you may find that the available rates are less competitive.

Can I add solar panels after remortgaging?

Yes, you can install solar panels after remortgaging, though you should check your mortgage terms to see if you need to notify your lender of any alterations to the property.

Do I need planning permission for solar panels when remortgaging?

If your solar panels were installed under permitted development rights, you typically do not need planning permission. However, listed buildings, conservation areas, and some other scenarios may require consent, and lenders may ask for evidence of this.

What happens if the solar panel company goes bust?

If a leased solar panel company ceases trading, the lease obligations may transfer to another company or need to be resolved. This uncertainty is one reason some lenders are cautious about leased arrangements.

Can I remortgage to fund solar panel installation?

You may be able to remortgage to release equity for solar panel installation, provided you have sufficient equity in your property and meet the lender's affordability criteria. This can be a cost-effective way to fund the installation.

Remortgage With Solar Panels | RemortgageSaver

The key factor that determines how solar panels affect your remortgage is whether you own them outright or whether they are leased or installed under a third-party arrangement such as a rent-a-roof scheme.

If you purchased and own your solar panels, most mainstream lenders will treat your property in the same way as any other. Owned solar panels are generally viewed as a home improvement that can add value to your property.

However, if your solar panels are leased or part of a rent-a-roof agreement, the situation becomes more complex. These arrangements typically involve a charge on the property or a long-term lease agreement, which some lenders view as an encumbrance. The third party retains ownership of the panels and the right to access your roof for maintenance, which can create legal complications.

Some lenders may decline applications where there is a lease or licence agreement in place, while others may accept them subject to certain conditions. The terms of the lease, the remaining duration, and the specific lender's criteria all play a role in the decision.

Understanding the distinction between owned and leased solar panels is crucial when planning a remortgage.

Owned Solar Panels

If you paid for the installation yourself or the panels were included when you bought the property, you typically own them outright. This is the most straightforward scenario for remortgaging. You should have documentation confirming ownership, installation certificates, and any relevant warranty information. Most lenders will not have an issue with owned panels and may even view them positively as an energy efficiency improvement.

Leased or Rent-a-Roof Panels

Under these schemes, a company installs panels on your roof at no cost to you, but retains ownership and the right to the feed-in tariff income. In return, you may receive free or reduced-cost electricity. These arrangements typically come with a lease lasting 20 to 25 years and may include a charge registered against your property.

This type of arrangement can be problematic for remortgaging because some lenders are concerned about the lease terms, the impact on property value, and potential complications if the solar panel company ceases trading. A specialist broker may be able to help you identify lenders who are comfortable with these arrangements.

Power Purchase Agreements (PPAs)

A PPA is similar to a lease but involves an agreement to purchase the electricity generated at a set rate. These can also affect your remortgage options depending on the specific terms and the lender's criteria.

When you apply to remortgage a property with solar panels, lenders will typically want to see certain documentation and will assess several factors.

Documentation requirements may include:

Proof of ownership or a copy of the lease/licence agreement
MCS (Microgeneration Certification Scheme) certificate for the installation
Building regulations compliance certificates
Electrical safety certificates
Details of any feed-in tariff or Smart Export Guarantee registration
Roof structural survey if requested by the lender

Factors lenders consider:

Whether the panels are owned or leased
The terms and duration of any lease agreement
Whether there is a charge on the property
The condition and age of the panels
Whether the installation meets current building regulations
The impact on property value according to their valuer

It is worth gathering all relevant documentation before you begin the remortgage process. Missing paperwork can cause delays or even lead to a declined application.

If your solar panels generate income through the feed-in tariff (FiT) or the Smart Export Guarantee (SEG), this can be relevant to your remortgage in several ways.

The feed-in tariff scheme closed to new applicants in April 2019, but existing participants continue to receive payments for the duration of their contract (typically 20 or 25 years). If you are receiving FiT payments, you will need to ensure that any transfer of the tariff is handled correctly during the remortgage process. The FiT is linked to the installation rather than the individual, so it generally transfers with the property.

The Smart Export Guarantee replaced the FiT for new installations and requires licensed electricity suppliers to offer a tariff for exported electricity. While the income from SEG is typically more modest than the original FiT rates, it still represents a financial benefit.

Some lenders may take FiT or SEG income into account when assessing affordability, though this varies between providers. If you are relying on this income to support your application, it is worth checking whether your chosen lender recognises it.

When remortgaging, ensure that your FiT or SEG registration details are up to date and that any change of lender is properly notified to the relevant energy supplier.

There are several practical steps you can take to improve your chances of a smooth remortgage when your property has solar panels.

Gather your documentation early. Locate your MCS certificate, installation records, warranty documents, and any lease or licence agreements. Having these ready before you apply can prevent delays.

Check your lease terms. If your panels are leased, review the agreement carefully. Some lease terms may need to be amended or assigned to satisfy a new lender's requirements. Understanding the process for this in advance can save time.

Consider speaking to a specialist broker. A mortgage broker with experience in properties with solar panels can help you identify lenders who are likely to accept your application. They will understand which lenders have favourable policies and can guide you through any additional requirements.

Be upfront with your lender. Disclose the presence of solar panels from the outset. Failing to mention them can lead to complications later in the process, particularly if the surveyor identifies them during the valuation.

Consider buying out a lease. If your leased panels are causing difficulties, it may be worth exploring whether you can buy out the lease and take ownership. This can simplify the remortgage process significantly, though you should weigh the cost against the potential benefits.

Navigating the remortgage process with solar panels can be more complex than a standard application, particularly if your panels are leased or subject to a third-party agreement.

A specialist mortgage broker can add significant value in this situation. They will have up-to-date knowledge of which lenders accept properties with various solar panel arrangements, what documentation is required, and how to present your application in the best possible light.

Brokers can also help you understand the implications of any lease terms and advise on whether it might be beneficial to buy out a lease before applying. They can compare deals across the market, including from lenders who do not deal directly with the public.

If you are unsure where to start or have been declined by a lender due to your solar panels, seeking professional advice could open up options you were not aware of. Many brokers offer an initial consultation at no cost, allowing you to explore your options without commitment.

Important: Your home may be repossessed if you do not keep up repayments on your mortgage. There will be a fee for mortgage advice. The actual rate available will depend on your circumstances. Think carefully before securing other debts against your home.