Interest rates and charges
Current interest rates
Residential mortgage discounts
Fees
Tariff of mortgage charges
Please note that as from 1 January 2010 we have raised the Standard Variable Rate (SVR) of the Society by 0.25%. The level of bank base rate has increasingly played little part in determining how the Society sets its interest rates. Over the past year we have kept our SVR as low as possible which has necessitated offering very low rates to savers.
We now feel that the balance needs to be redressed somewhat and consequently alongside the increase in the SVR, we will be raising the rates paid on our ISA savings accounts.
However, our SVR remains very competitive in the market generally, and of course, an increasing number of our borrowers are benefiting from our C-Change mortgage discounts.
We feel that it is important to note that the combined effect of the many regulatory changes that will begin to be implemented this year point to all lending institutions being forced to raise their mortgage rates substantially over the next few years. This is because the changes will ensure that competition for the savings that fund mortgages will increase, leading to higher rates paid to savers, while at the same time lending institutions will not be able to generate income from their reserve funds (liquidity) as they will be required to hold large amounts of Government bonds which generate next to no return. In addition they will need to hold larger amounts of capital in relation to each mortgage loan provided, which will mean that profit margins must be increased. We will do everything to ensure that any increases that we may implement in the future will be kept as low as we can.
Current interest rates
| Mortgage rates from 1 January 2010 | ||
|---|---|---|
| TYPE OF MORTGAGE | Interest rate pa | |
| Residential | Residential owner occupiers (Standard Variable Rate) | 4.90% The overall cost for comparison is 4.80% APR |
| Buy-to-let | 5.15% | |
| Retired borrowers | 4.90% | |
| Housing associations | 4.90% | |
| Housing co-operatives (established*) | 5.10% | |
| Housing co-operatives (new and emerging**) | 5.10% to 5.75% | |
| Non-Residential | Charities*** | negotiable between 2.00% and 5.00% above Bank of England Base Rate |
| Part residential | up to 5.75% | |
| Small woodlands | up to 6.75% | |
| Small scale development*** | negotiable between 2.00% and 5.00% above Bank of England Base Rate | |
| Commercial*** | negotiable between 2.00% and 5.00% above Bank of England Base Rate | |
Interest rates are variable and correct at time of publication.
*Subject to the provision of 3 years satisfactory trading accounts.
**Negotiable subject to credit risk appraisal. Our established housing co-operatives interest rate will apply after three years, subject to satisfactory account conduct, and the production of satisfactory trading accounts for the co-operative.
***A minimum overall rate of 4.50% is applicable to all new loans made to Charities, and of 4.90% to small scale developments and commercial enterprises.
Residential mortgage discounts
| Type of discount | Interest rate reduction |
Applicable to | When applicable |
|---|---|---|---|
| C-Change for sustainable homes |
0.5 - 1.25% | The whole of the mortgage amount. The size of the discount will depend on the energy rating achieved - the higher the energy rating, the higher the discount | Completion, if energy rating confirmation is available, otherwise, as soon as energy rating confirmation received |
| C-Change energy improvements |
1% | Funds being used to install energy saving measures or renewable energy systems | Once works are complete |
| Savers | 0.25% | Savers who have been with the Ecology for 2 years and have maintained an average minimum account balance of £500 | Once works are complete |
| Long-term | 0.25% | All funds not qualifying for either the Savers or C-Change discounts | After the first 2 years |
All of the above discounts are subject to the prior satisfaction of any conditions applied to the mortgage.
Fees
Mortgage application fees
| Type of mortgage | Fee |
|---|---|
| Residential | £250 |
| Buy-to-let | £350 |
| Small woodlands | £250 |
Please contact the Mortgage Department for details of the fees charged for Commercial and Non-Residential Charity applications.
Residential valuation fees
| Value of property not exceeding | Fee |
|---|---|
| £100,000 | £180 |
| £150,000 | £210 |
| £200,000 | £240 |
| £250,000 | £270 |
| £300,000 | £300 |
| Up to each £50,000 thereafter add | £30 |
| The above fees include VAT at 17.5% | |
Please note that these fees only apply to residential, buy-to-let and housing co-operative applications.
In all other instances, the fee required will be determined on a case by case basis. A more detailed inspection, such as a Homebuyers' Report, can often be provided by the same valuer at a fee to be negotiated. Please advise on this point when submitting your application. Depending on the nature of the property, the fee required may on occasion differ from this scale.
Tariff of mortgage charges
Click to view or download a copy of our Tariff of Mortgage Charges (PDF*, 52K).