LendInvest launches green finance initiative to drive sustainable property improvements
UK-based non-bank property lender LendInvest has launched its first green finance initiative.
All LendInvest Bridge-to-Let borrowers are now eligible to benefit from a cashback when they improve the EPC rating (or Energy Efficiency Rating) of a property during the term of their loan. The initiative applies to Bridge-to-Let loan applications from 1 March 2020.
Borrowers can save up to GBP600 on every LendInvest Bridge-to-Let loan. The final amount saved depends on the extent to which they improve the EPC rating. Borrowers that increase the rating from ‘C’ or below a ‘C’ to an ‘A’ will receive the full amount; borrowers that improve their property’s rating from below a ‘C’ to either ‘C’ or ‘B’ will receive GBP200 and GBP400 respectively. The cashback will be netted against the loan redemption amount at the end of the term.
Industry standards require landlords to achieve a minimum EPC rating of E on all rental stock. This green finance incentive reflects LendInvest’s ambitions to promote higher than average EPC ratings on the rental properties it backs.
This initiative is the first in a series of planned product innovations that LendInvest intends to launch to enable its borrowers to have the most positive environmental impact.
Rod Lockhart, Chief Executive Officer at LendInvest, says: “We’re hugely proud to be able to launch this innovative incentive. We’re excited to be among the very first lenders in the sector to be thinking about how we can encourage our borrowers to put the environment first. Every time we originate a loan, we’re helping our borrowers to have a positive impact on the environment and the communities in which they work. But there is always more we can do. By incentivising our borrowers to improve the EPC rating of their properties, we want to raise the bar and help the property sector improve the energy efficiency of buildings.
“Whether it’s the products we bring to market, or the way that they are made available to borrowers and brokers, thinking differently and innovatively is at the heart of how LendInvest works. As a responsible business that’s serious about its environmental and social obligations, we are excited to apply our instinct for innovation into green product offers like this. We’re really looking forward to extending this initiative right across our product range in the near future.”