The new edition of the popular investment loan for residential real estate creates incentives for more environmentally friendly apartments
A popular home investment loan has been relaunched with the aim of attracting small and medium-sized investors to invest in energy-efficient homes.
The Green Investment Loan, offered by Secure Trust Bank’s (STB) Real Estate Finance division, is aimed at investors wishing to purchase or refinance residential properties where over 90% of the total area has an Energy Performance Certificate (EPC) rating of AC . Investors in such properties can benefit from an interest rate that is cheaper than STB’s standard home investment loan.
The loan is relaunched after its first iteration last year, securing around £150m of investment from STB in 525 energy-efficient homes in just six months.
The relaunch responds to increasing pressure on the property sector to make the UK housing stock more efficient. Currently, more than half of homes in England are rated D or below for energy efficiency, with regulatory requirements for UK landlords expected to be tightened ahead of the Future Homes and Buildings Standard in 2025.
Under the terms of the loan, STB will offer a variable interest rate of 2.95% above the Bank of England rate for an LTV of up to and including 60%, rising to 3.10% for an LTV of up to and including 65%. elevated. Loans are available from £2m – £45m.
Chris Daly, Head of Origination at Secure Trust Bank Real Estate Finance, said: “As the residential property sector comes under increasing pressure to raise energy efficiency standards, it is vital that we do everything we can to encourage greener practices Reward and encourage attractive financing options. Our Green Investment Loan was introduced to give investors more options to purchase or maintain an existing portfolio or free up equity to fund more energy efficient housing projects.”