Designed for investors looking to purchase or refinance homes where over 90% of the floor area has an EPC rating of A-C, the option has a more favourable variable interest rate than STB’s standard residential investment loan.
The product offers loans between £2m-£45m, priced at 2.95% over the Bank of England interest rate at maximum 60% LTV, and 3.10% above base rate at up to 65% LTV.
The first iteration of the loan saw STB invest around £150m, secured against 525 energy-efficient homes within six months last year.
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The product was relaunched in response to Increasing pressure for the property sector to make the UK housing stock more energy efficient, as currently, over 50% of homes in England are rated D or below for energy efficiency.
With energy efficiency regulations for landlords expected to tighten, STB hopes the relaunched loan deal will incentivise investment into green housing.
Chris Daly, head of origination at STB 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.
“Our green investment loan has been reintroduced to provide greater scope for investors to acquire or maintain an existing stock, or release equity to fund further energy-efficient residential projects.”
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