Charles Street Finance has launched a green refurbishment bridging product aimed at landlords and property investors improving the energy efficiency of residential property.
The product is initially available on residential properties across the Northwest and is designed to fund purchases, remortgages and works intended to lift properties to an EPC rating of C or above.
Charles Street Finance said the product responds to demand for short-term finance to support energy-efficient refurbishments ahead of the government deadline for rental homes to reach a minimum EPC C rating by October 1, 2030.
The lender said it currently delivers an average of £35m in monthly bridging finance.
The green refurbishment bridge offers loans of up to £600,000 over an 18-month term, with monthly rates starting at 0.99% at 75% loan-to-value.
Once works such as air source heat pumps, insulation or triple-glazed windows have been installed and the property has reached EPC C or above, borrowers can access a lower bridging rate.
The rate falls to 0.95% for an EPC C rating, 0.85% for a B rating and 0.80% for an A rating.
Charles Street Finance said around half of private rented homes require improvements to their EPC rating, creating demand for short-term finance to upgrade housing stock.
The lender will test demand for the product in the Northwest before considering a national rollout.
Penny Ridgway, development relationship manager at Charles Street Finance, says the product could be used to repurpose buildings or renovate portfolios at scale with structured finance built around the refurbishment bridge offer.
She says: “Over half (56%) of homes in the Northwest 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 Northwest 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.”
