Reducing our carbon footprint is now being made more appealing by the relaunch of a widespread residential investment loan. The aim is to encourage small and medium investors to invest in energy-efficient homes. 

Designed for those wanting to refinance or purchase residential properties, The Green Investment Loan is being offered by the Real Estate Finance Division of Secure Trust Bank (STB). It has been created for properties that have over 90% of the total floor plan certified as an A-C rating on their Energy Performance Certificate (EPC). 

A reduced interest rate is available to those investing in these properties as opposed to STB’s standard residential investment loan. The loan is being reintroduced after its first launch proved its popularity by seeing a £150m investment secured against 525 energy-efficient homes by STB in a record six months last year. 

The mounting pressure for the property sector to encourage higher efficiency levels in UK homes has spurred on the relaunch. Currently, more than half of England’s homes rate D or lower for energy efficiency, and it is expected that ahead of the Future Homes and Buildings Standard in 2025 the requirements of UK landlords will be stiffened. 

Loans are available from £2m – £45m and STB will offer a variable rate of 2.95% over the Bank of England interest rate for an LTV up to and including 60%, with that rate increasing to 3.10% for an LTV up to 65%.

Head of origination at Secure Trust Bank Real Estate Finance, Chris Daly, 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 introduced to provide greater scope for investors to acquire or maintain an existing stock or release equity to fund further energy efficient residential projects.”