TAB Launches New Commercial Mortgage Product That Rewards Borrowers Who Fulfil ESG Criteria

Posted by TAB on 14th September 2023 -

• TAB has announced the launch of its new mortgage product where borrowers can earn discounts of up to half the exit fee by meeting ESG (Environmental, Social, Governance) criteria
• Interest-only loans range from £250,000 to £2,500,000 with a three to ten-year term
• The mortgage product will offer loan-to-value (LTV) ratio of up to 65% for all borrowers

TAB, the real estate finance and investment house set to have a £500m loan book in 2024, has today launched its first commercial mortgage product. The new product prioritises sustainability and has built-in strong ESG criteria to encourage best practice and 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% off 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, using green materials).
• An additional 0.25% discount for social outcomes tied to UN Sustainable Development Goals (for example, if the property is leased to social enterprises, charities or adult learning).

The TAB team will work closely with the borrower so that outcomes are assessed with the appropriate evidence. 

"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" - Duncan Kreeger, CEO and Founder of TAB

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