Lendinvest has introduced its first green finance initiative, available to bridge-to-let borrowers.

As of March 1, the lender is offering cashback to borrowers who improve the Energy Efficiency Rating of a property during the term of their loan.

Up to £600 cashback will be available on the products, with the total saved dependent on the extent to which the EPC rating is improved.

Borrowers that increase the rating from ‘C’ or below a ‘C’ to an ‘A’ will receive the full amount; borrowers that improve their property’s rating from below a ‘C’ to either ‘C’ or ‘B’ will receive £200 and £400 respectively. The cashback will be netted against the loan redemption amount at the end of the term.

Industry standards mean all landlords are now required to achieve a minimum EPC rating of E on all rental stock.

Lendinvest plans to introduce further product innovations to assist its borrowers in becoming more ‘green’.

Lendinvest chief executive Rod Lockhart says: “We’re excited to be among the very first lenders in the sector to be thinking about how we can encourage our borrowers to put the environment first. Every time we originate a loan, we’re helping our borrowers to have a positive impact on the environment and the communities in which they work. But there is always more we can do. By incentivising our borrowers to improve the EPC rating of their properties, we want to raise the bar and help the property sector improve the energy efficiency of buildings.”