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Lower interest rate for investors in A-to-C EPC rated homes

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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  • icon

    Ok, so the deal is I spend 10’s of thousands of pounds to get my older properties to be a C rating, to get a slightly better loan % for this expensive refurbishment!! No thanks. It may work for more modern properties which are already a C or above, but not the older stuff.

  • George Dawes

    And the older stuffs better built too

    Build back better , more like build back crappier

  • icon

    Is 2.95 above base rate (currently 1.25) a better rate? Not at the level I am borrowing at!


    It's approaching treble my best deals fixed around a year ago.

    Does the Green description apply to the borrowers?

  • Gareth Cadden

    We help landlords nationwide reach band C ratings by accessing all the latest Government funding. If no funding can be obtained we can provide quotes.
    New ECO4 funding has just launched this July.

    Taking a whole home approach to reducing emissions and lowering energy costs.

    Tenants on benefits instantly qualify however when local authorities publish their statement of intent, tenants with a household income below £31,000 or vulnerable to living in a cold home can qualify.

    The properties to target are E/F/G rated that can have multiple measures to gain the necessary increase in SAP points.

    Band F/G needs to get to at least a D

    Band E need to get to a C

    Measures available

    All insulation measures Internal Wall Insulation IWI, Cavity Wall Insulation CWI, Loft Insulation Li, External Wall Insulation EWI, Room In Roof Insulation RIR, Underfloor Insulation UFI, Flat Roof Insulation FRI.

    First Time Central Heating ( Gas meter must be in situ & installed before March 2022 to qualify)
    Air Source Heat Pumps ASHP
    Solar PV
    Heating Controls


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