Charles Street Finance has launched a ‘green’ renovation bridging loan with the aim of making properties more energy efficient.
The company said it wants to meet growing demand for short-term financing to pay for energy-efficient renovations.
The new product will initially be available in homes across the North West.
The aim is to reward experienced real estate investors and landlords for their efforts while they are under pressure to comply Government deadline of a minimum C Energy Performance Certificate (EPC) rating for rental stock by October 1, 2030.
The new product offers bridging loans of up to £600,000 to purchase a property or transfer an existing loan and complete a range of work to improve energy efficiency over an 18-month period. The monthly interest starts at 0.99% for a loan-to-value (LTV) of 75%.
Once energy-saving measures such as air source heat pumps, insulation or triple-glazed windows are installed – lifting a home’s EPC rating to C or higher – a lower bridging rate is unlocked for the borrower.
The rate for achieving an EPC C rating is 0.95%, 0.85% for a B rating and 0.80% for an A rating.
The Charles Street team wants to test demand for the new product in the North West before rolling it out nationally.
Charles Street development relations manager Penny Ridgway said: “More than half of homes in the North West are estimated to have an EPC of D or lower, meaning there is high demand to upgrade the housing stock for residential or rental use.
“We are excited to launch this offering to Northwest brokers and direct clients as we support them by providing them with the financial space they need to realize their real estate ambitions. It is always our ambition to act as a partner with our end clients to help maximize opportunities through real estate.”