"This product rewards those who want to make positive change and provides tangible discounts which we hope will contribute to the future-proofing of buildings, enhancing our communities and environment."
TAB has today launched its first commercial mortgage product. The new product prioritises sustainability and has built-in strong ESG criteria to reward those who make improvements with an exit discount.
TAB’s mortgage product offers property investors interest-only loans from £250,000 to £2,500,000 and terms from three to ten years. Borrowers can access loans with a flexible LTV of up to 65%.
Borrowers can earn discounts of up to 1.25% off an exit fee of 2.5% by meeting ESG criteria.
Up to 0.75% will be reduced for improving Energy Performance Certificate (EPC) ratings (for example D to C: 0.25%, D to B: 0.5%, D to A: 0.75%).
Sustainability action can earn another 0.25% discount, for example installing EV charging, efficient waste management, or using green materials.
An additional 0.25% discount is applicable for social outcomes tied to UN Sustainable Development Goals (for example, if the property is leased to social enterprises, charities or adult learning).
Duncan Kreeger, CEO and founder of TAB, said: "This commercial mortgage represents the natural next step for our business. We are thrilled to introduce our mortgage product, further building on the trust we have established with our customers and can continue serving property investors beyond their short term needs. The TAB Mortgage offers personalised commercial mortgages at the speed of bridging.
“It was important to us not to create just another commercial mortgage. Buildings endure long after we do, so it's essential that our mortgage product not only encourages our customers to make environmental improvements but also prioritises sustainability and well-being. This product rewards those who want to make positive change and provides tangible discounts which we hope will contribute to the future-proofing of buildings, enhancing our communities and environment. At TAB, we are committed to playing our part in a more sustainable future.”
