Paragon Bank’s development finance division has grown its green homes initiative to support developers building energy-efficient homes.
The lending package was launched in November 2021 with an initial £100m tranche of financing available to developers.
It was increased to £200m in 2023 and has now been further extended to £300m.
The move comes as Paragon aims to support more small and medium size developers to deliver green homes.
The initiative allows developers that deliver homes with an EPC rating of A to receive a 50% reduction on loan exit fees.
Neal Moy, managing director of Paragon Development Finance, said: “The strong level of demand for our green homes initiative shows that producing energy-efficient homes is high on the agenda of many SME housebuilders and developers.”
Deborah Bateman, sustainability director at Paragon Banking Group, said: “This scheme rewards those developers building the most energy-efficient homes, helping to improve the environment and reduce energy bills for residents.
“The UK still has a long way to go to become carbon neutral by 2050, but we stand ready to support our customers.”
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