Charles Street Finance has launched a ‘green’ refurbishment bridge 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 residential properties across the North West.
It aims to reward real estate investors and experienced property owners for their efforts as they face pressure to meet requirements Government deadline Obtain a minimum Energy Performance Certification C (EPC) rating for rental stock by October 1, 2030.
The new product offers bridge loans of up to £600,000 to purchase a property or remortgage an existing loan and complete a scope of work to improve energy efficiency over 18 months. Monthly rates start at 0.99% with a 75% loan-to-value (LTV) ratio.
Once energy saving measures such as air source heat pumps, insulation or triple glazed windows are installed – raising a property’s EPC rating to C or higher – a lower bridging rate is unlocked for the borrower.
The rate of obtaining an EPC rating of C is 0.95%, 0.85% for rating B, and 0.80% for rating A.
The Charles Street team aims to test demand for the new product in the North West before rolling it out nationally.
Penny Ridgway, Charles Street Development Relations Manager, said: “It is estimated that more than half of homes in the North West have an EPC of D or below, meaning there is a lot of pent-up demand to upgrade housing stock for residential or rental use.
“We are thrilled to launch this offering to Northwest broker and direct clients as we support them by providing the financial leverage they need to realize their real estate ambitions. We always aspire to work as a partner with our end clients to help maximize opportunities through real estate.”
