TAB launches commercial mortgage product with ESG incentives
Property investment platform TAB has launched a new commercial mortgage product, where borrowers can earn discounts for meeting environmental, social and governance (ESG) criteria.
The new, interest-only loans range from £250,000 to £2.5m with a three to 10-year term, and a loan-to-value ratio of up to 65 per cent.
TAB is offering borrowers a discount of up to 0.75 per cent off an exit fee of 2.5 per cent, for improving Energy Performance Certificate ratings.
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Borrowers can also earn a 0.25 per cent discount off the exit fee for sustainability action, such as installing EV charging, efficient waste management or using green materials.
Additionally, they can earn another 0.25 per cent discount for social outcomes tied to UN Sustainable Development Goals, such as if the property is leased to social enterprises, charities or adult learning.
TAB said that its team will work closely with the borrower so that outcomes are assessed with the appropriate evidence.
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“This commercial mortgage represents the natural next step for our business,” said Duncan Kreeger (pictured), chief executive and founder of TAB.
“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.”
TAB has written over £380m in loans since launching in 2018 and is targeting £500m of cumulative lending in 2024.