Cynergy Bank launches loan to help landlords with green transition

Cynergy Bank is providing funding for residential landlords to support them in making vital changes to their rental property portfolios to assist with the nation’s green transition.

The EPC C+ Term Loan is available from today for existing and new landlord customers of Cynergy Bank.  It targets those who are looking to purchase properties (or refinance existing properties) which already meet proposed new energy efficient standards.  The product’s key features are:

• Borrowing from £1m to £40m
• Up to 70% loan to value
• Variable or fixed rates of interest on terms up to ten years
• Interest only or repayment options
• Preferential interest rates available for existing customers
• 90% of the property asset presented must have Energy Performance Certificates of A, B or C

The changes in the Minimum Energy Efficiency Standards as set out by the Government are in line with its target to be net-zero by 2050.  These changes require that from 2025 all newly rented properties will require a minimum EPC (Energy Performance Certificate) rating of ‘C’ – up from ‘E’.  the same rules will apply to existing tenancies from 2028.  For properties without a Valid EPC the fines could increase to £30,000 up from £5,000.

The Bank recognises the challenges that many landlords will face over the coming years and has now launched two products in its commitment to support new and existing customers to meet energy efficiency requirements.  Today’s EPC C+ Term Loan launch follows the launch of the EPC Property Improvement Loan last month.  This product is for the bank’s existing landlord customers to allow them to make necessary energy efficiency improvements to their rental properties. Maximum borrowing amount of up to £500k per borrowing entity.

All loans are subject to Credit approval and terms and conditions will apply. Properties provided as security may be repossessed if you fail to keep up repayments on the loans.

Sharon Maguire, chief product and brand officer of Cynergy Bank commented, “We are delighted to launch our new EPC C+ Term Loan which rewards residential property landlords who are looking to purchase, or refinance, energy efficient properties with an EPC rating of A, B or C by providing discounted rates on our standard pricing for both variable and fixed rate products.

“The launch supports our drive and ambitions for growth this year whilst forming an essential part of our Environmental, Social and Governance (ESG) strategy – showing that we are using our products and services to help our customers with their climate transition and reduce the impact their businesses have on the environment.

“We have supported scaling SMEs through tough environments including the pandemic.  Our teams understand their clients and the markets they operate in. These new products underline our ambition to help our property clients manage their impact on the environment,”