TAB has launched its first commercial mortgage product, which is a green offer that rewards investors who make improvements with an exit discount. 

The property finance firm says the deal offers property investors interest-only loans from £250,000 to £2.5m and terms that range over three to ten years.  

Borrowers can access loans with a flexible LTV of up to 65% — and can earn discounts of up to 1.25% off an exit fee of 2.5% by meeting environmental, social, and corporate governance criteria. 

Further product details include: 

• Up to 75 basis points off for improving energy performance certificate ratings (for example, D to C: 25bps, D to B: 50bps, D to A: 75bps) 
• Sustainability action can earn another 25bps discount (for example, installing an electric vehicle charging unit, efficient waste management, using green materials). 
• An additional 25bps discount for social outcomes tied to UN Sustainable Development Goals (for example, if the property is leased to social enterprises, charities or adult learning) 

TAB founder and chief executive Duncan Kreeger says: “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.”