A residential investment loan has been relaunched with the aim of incentivising investors to invest in energy efficient homes.
The Green Investment Loan, offered by the Real Estate Finance division of Secure Trust Bank, is designed for investors looking to purchase or refinance residential property where over 90 per cent of the total floor area has an Energy Performance Certificate rating of A to C.
Investors in such properties can benefit from an interest rate which is lower than the bank’s standard residential investment loan.
The loan is being relaunched after its first iteration saw around £150m of investment from STB secured against 525 energy efficient dwellings in just six months last year.
Under the terms of the loan, STB will offer a variable rate of 2.95 per cent over the Bank of England interest rate for an LTV up to and including 60 per cent, with that rate increasing to 3.1 per cent for a Loan To Value of up to 65 per cent. The loans available vary from £2m to £45m.
Chris Daly, head of origination at Secure Trust Bank Real Estate Finance, said: “As the residential property sector faces mounting pressure to raise energy efficiency standards, it is vital that we do all we can to reward and incentivise greener practices through attractive funding options.
In recent months many buy to let mortgages specialists, typically offering smaller loans to individual and small portfolio landlords, have also offered preferential rates for those investors purchasing properties with 'good' EPCs.
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