Robert Lankey, head of commercial lending at N&P, said; "For quite some time we have been working on the concept of a green commercial mortgage to encourage and reward businesses that contribute positively towards our environment. With increasing pressure on business to address climate change, resource pressures and pollution, we are seeking to help those who make a difference. We would like to thank the UK Centre for Economic and Environmental Development (UK CEED) for its help in developing this innovative approach to business lending."
Jonathan Selwyn, UK CEED executive director, said: "We are delighted to be assisting N&P with this exciting initiative. By introducing this green commercial mortgage N&P will stimulate both bolder innovation in building design in the commercial sector and the environmental goods and services industry, as well as encourage businesses to manage their environmental impacts more effectively."
BACKGROUND
N&P first offered "Green" mortgages in 1998 – to residential homebuyers. The Society followed this with the world’s first Carbon Neutral® mortgage in July 2000. As far as N&P is aware, no other lender offers a 'green' commercial mortgage providing a discount to business customers involved in the environmental sector or for environmentally-focused businesses.
To qualify businesses will complete a simple questionnaire and will be awarded points for each positive answer. Businesses that score 10 points or more will qualify for the scheme.
There are three categories of businesses that could qualify for N&P’s "Green" Commercial Mortgage:
* Those businesses that provide an environmental "service" such as clearing pollution, recycling etc
* Those businesses that manufacture an environmental product such as energy efficient light bulbs
* Those businesses whose premises are built to high environmental standards.
GREEN COMMERCIAL MORTGAGE FEATURES
0.25% discount for 2 years off N&P’s standard tiered commercial rates as shown below (figures in table are BEFORE discount)
Loan Size
Minimum margin above 3 month LIBOR
£30,000 – £199,999
1.75%
£200,000 - £499,999
1.50%
Above £500,000 - £5m
1.25%
* Choice of variable rate or fixed rate mortgage schemes.
* Minimum loan just £30,000 – max £5 million.
* Loans of up to 80% available for modern, good quality industrial property (including warehouses and factories), subject to conditions.
* Max mortgage term is 25 years.
* For full details of all terms and conditions, fees and charges, businesses can contact a commercial lending manager on 01733 372425.
