Finance providers are beginning to offer improved loan terms for energy-efficient and environmentally friendly buildings, otherwise known as energy-efficient mortgages.
An increasing number of financial lenders providing energy-efficient mortgages. For example, Lloyds Bank’s Clean Growth Financing Initiative provides discounted lending for companies that use electric vehicles, wind turbines or solar panels. Aviva Investors has announced a commitment to originating £1bn in sustainable transition real estate debt that looks to promote green investment opportunities. Whereas in the Buy to Let (BTL) market, Paragon Bank recently launched a range of higher than normal 80% loan to value BTL mortgages for properties with an energy performance rating of A to C.
The benefits of green mortgages make it easier for financial providers to invest in tackling climate change. Additionally, by supplying green financial services, improvements in the energy efficiency of buildings, vehicles and other assets can be made.
The team at Hallcroft have not yet seen development finance providers encourage sustainable and climate-friendly building techniques through more favourable loan terms. However, following the trends in the commercial and BTL markets, the possibility is nearer than once thought.
This poses the question, are you green enough? Will you be ready to benefit if development lenders introduce green finances? Which green purpose are you supporting?
If you are a development finance provider helping businesses reduce their environmental impact, we would like to hear from you, let us know how you have made a sustainable difference by getting in touch with us!