Charles Street Finance has launched a green refurbishment bridging finance product designed to reward landlords and property investors who improve the energy efficiency of their properties, with lower rates unlocked as EPC ratings improve.
The Northwest-based commercial finance provider, which currently delivers an average of £35 million in monthly bridging finance, says the product addresses growing demand for short-term funding to support energy-efficient refurbishments. Its launch comes as landlords face pressure to meet the government's requirement for a minimum EPC C rating across rental stock by 1 October 2030.
Available initially on residential properties across the Northwest, the product offers bridging loans of up to £600,000 to purchase a property or remortgage an existing loan, covering a defined scope of works over an 18-month term. Monthly rates start at 0.99% at 75% loan-to-value.
The rate structure is tied directly to the EPC outcome. Once energy-saving measures, such as air source heat pumps, insulation, or triple-glazed windows, have been installed and lift the property's rating to C or above, borrowers move to a lower rate. Achieving a C rating brings the rate down to 0.95%, a B rating to 0.85%, and an A rating to 0.80%.
With roughly half of private rented homes currently falling below EPC C, Charles Street says demand for this type of short-term funding is significant. The team plans to test the product across the Northwest before considering a national rollout.
The product is aimed at experienced property professionals looking to make energy efficiency improvements that could also lift rental yields or strengthen appeal to future buyers. Penny Ridgway, development relationship manager at Charles Street, says it can also support larger-scale activity, including building repurposing and portfolio renovation using structured finance built around the bridging offer.
"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," said Ridgway.
"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."
