MS Lending Group launches new ESG products

By David Craik 20th January 2022

MS Lending Group is aiming to become the industry’s ESG leader after launching two new products focused on helping the environment and addressing social inequality.

The lender, which funded over £25m of business in its first year of trading in 2021, said sustainability and ESG were now more important than ever as it unveiled a Social Housing & Charities and Energy Performance product.

MS Lending, led by CEO and founder Michael Stratton, said it would lend up to 85% on residential purchases and up to 75% on commercial when there is a signed agreement for lease in place with a: Housing Association, Registered Provider, Community Interest Companies (C.I.C), or Registered Charity.

All leases must have a minimum of 5 years unexpired, and properties must not be currently occupied by a Housing Association, Registered Provider, Registered Charity or Community Interest Company (C.I.C).

Through its new Energy Performance product MS Lending will also refund borrowers 1% of the total gross loan amount if improvement has been made to the EPC rating during the term of their loans.

This can be on all types of loans as long as they improve the rating.

A copy of the current EPC rating will be required before completion and an updated EPC will need to be evidenced on redemption.

The product is available on both purchases and capital raises and is for residential properties only. It will only be available for loans paid back within the agreed term.

The group wants to take the lead in the ESG sector both as a result of today’s rapidly changing business climate where attention to ESG issues is becoming critical to long-term competitive success and because of the social disruption caused by the pandemic.

“ESG has been high on the agenda for MS Lending for some time and I am extremely excited and proud that we have been able to launch these market leading products.

We have thought long and hard about what we feel the products need to look like to make sure the customer, as ever, is at the forefront of everything we do.

The products will not only help our customers during their acquisition / refurbishment stage, but with their onward exit be it longer term finance or sale,” Stratton said.

He added that by incentivising efficiency its customers will not only save on costs but will also make their property more valuable in the long term.

“The 1%, coupled with the enhanced LTV’s, highlight how committed we are as a lender to integrating environmental, social, and governance factors into our funding decisions and processes,” he said.

MS Lending promised that this was ‘just the start’ in its ESG strategy and we may see further innovation with more green bridging loans.