Charles Street Finance launches green refurb bridging product 

Commercial finance provider, Charles Street Finance, has launched a 'green' refurbishment bridge product to incentivise efforts to make property more energy efficient.

The new product, available initially on residential properties across the North West, aims to reward experienced property investors and landlords as they face pressure to meet the government deadline of a minimum C Energy Performance Certificate (EPC) rating for rental stock by October 2030.
 
The new product offers bridging loans up to £600,000 to purchase a property or remortgage a current loan and complete a scope of work to improve energy efficiency over an 18-month term. Monthly rates start at 0.99% at 75% LTV. 

Once energy saving measures such as air source heat pumps, insulation or triple glazed windows are installed - lifting a property’s EPC rating to C or above - 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.

With approximately half of private rented homes rented homes in need of improvements to their EPC rating the need for short term finance to improve housing stock is vast. The Charles Street team aims to test demand for the new product in the North West ahead of it looking to roll out nationally. 

Penny Ridgway, development relationship manager at Charles Street, said: “Over half (56%) of homes in the North West are estimated to have an EPC of D or lower, which means that there is a lot of pent-up demand to upgrade housing stock for residential or rental use. We have listened to our customers and understand that they want a funding partner that can help with access to fast finance to purchase a property but also support them with a lower rate once remedial works have been completed within a maximum 12-month period.

“We are delighted to launch this offer to North West broker and direct customers as we support them by providing the financial headroom they need to realise their property ambitions. It is always our ambition to act as a partner with our end customers to help maximise opportunities through property.”