The hybrid product offers discount for properties hitting the EPC target within six months
Specialist mortgage provider Hampshire Trust Bank (HTB) has introduced a new product for clients looking at improving the Energy Performance Certificate (EPC) rating of their property via refurbishment.
Combining the benefits of a light refurbishment bridging product wrapped in a term loan, Bridge EPC Refurb provides the borrower with added benefits if the property achieves an EPC rating of ‘C’ or above after six months.
The product consists of a six-month bridging loan followed by a term loan. The bank will discount the standard rate by 20bps on achieving the EPC ‘C’ rating or above, with the client having six months to deliver the improvements. HTB will also pay for the new EPC certificate.
Louisa Sedgwick, managing director of specialist mortgages at Hampshire Trust Bank, said HTB was delighted to offer the hybrid product.
“We are always striving to meet the demands of brokers and their clients, and we believe we are meeting a real need with Bridge EPC Refurb acknowledging that the live challenge we face is within the UK’s existing housing stock,” she said.
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The product, Sedgwick explained, was built in response to growing requests from their intermediary partners, ensuring they can offer a credible solution to landlords, who can then focus on getting their properties up to energy efficiency standards sooner.
“The 2025 deadline for EPCs to have a rating of C or above for new tenancies is fast approaching, and we are receiving an increasing number of enquiries from our broker partners who have clients looking to improve the energy efficiency of their properties,” she continued.
Landlords have a firm regulatory deadline to have their properties get an EPC rating of at least ‘C’ by 2025 or face being unable to let them out. It is estimated that up to two-thirds of rented properties have not yet achieved this.