news | 3 months ago | Andreea Dulgheru

Octopus launches new BTL product for energy efficiency improvements

Octopus Real Estate has unveiled a new BTL product to support landlords looking to improve the energy efficiency of their BTL properties.

The new Enviro-let option — which is available to brokers serving clients in England and Wales — can be used for a range of purposes including refinancing or purchase of security, acquiring additional or deleveraging existing investment properties, or carrying out improvement works in an existing portfolio.

It offers loans from £50,000 at a rate of 7.25% per annum, and provides the option to drawdown up to 5% LTV of additional borrowing, as long as the borrower self-certifies that the funds will be used for improvement works listed within the recommendation section of their EPC certificate — such as installing cavity wall or loft insulation, or replacing an old boiler with an air source heat pump among others.

The additional borrowing is underwritten during the initial application, but can be drawn down at a later date.

Works are expected to be completed within one month of drawdown or completion, and borrowers will be required to provide Octopus with a copy of the new EPC certificate within six months, which must confirm a rating of C or above.

“Octopus Real Estate is committed to helping provide quality, sustainable homes — energy efficiency is a big part of this; it’s a key priority for tenants, providing them with lower energy bills and a more comfortable living environment,” said Steve Matthews, head of residential lending at Octopus Real Estate (pictured above).

“Enviro-let will support landlords to benefit from the ‘green premium’ involved with meeting this ever-growing demand, offering simple and flexible access to additional funding that helps increase their property’s EPC rating.”

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