If you want to develop a run-down property for letting, are looking to purchase and let an eco home, or want to improve the energy efficiency of your current rental property, we can help.
Our buy-to-let mortgages give you a good deal over the long term - not just for the first couple of years. We offer a competitive buy-to-let rate (currently 5.15%) and we calculate interest on a daily basis. We keep our fees as low as possible and you can potentially benefit from our C-Change mortgage discounts.
We specialise in mortgages for projects which minimise environmental impact or help promote sustainable communities and lifestyles. Even if you don't consider yourself to be green, your project might be.
Our buy-to-let mortgages are available for:
- Energy saving improvements - installing energy saving measures or renewable technologies
- Renovation - renovating a derelict or run down property (a form of recycling)
- Conversion - converting a disused or redundant building
- Eco new builds - building a new property using sustainable materials.
We also lend on projects that we consider to be green by nature (such as those using traditional materials). For more information, see What we lend on.
Because we want to avoid first-time buyers and families being squeezed out of the property market, we don't offer our buy-to-let mortgages to companies or professional landlords. Our small-scale approach means that we won't lend if your portfolio has more than four properties in total. You can find out more by downloading our Buy-to-let mortgages brochure.
If you have any questions about whether you can apply for an Ecology mortgage, please contact us. Our experienced team treats each project individually, and we don't use automated decision systems.
Key features
- Our current buy-to-let rate is 5.15%
- We offer low initial fees and calculate interest on a daily basis, reducing the overall lifetime cost of your borrowing
- We offer a straightforward, individual approach, and consider each application individually
- We reward energy efficient homes and energy saving measures through our range of C-Change discounts
- Buy-to-let mortgages are only available on a full repayment basis
- Mortgage terms are available from 10 years up to 25 years
- You can borrow up to 70% of the property's value, depending on the expected rental income and your personal income
- The rental income derived from the property must be 35% more than the mortgage payment due
- This product is not regulated by the Financial Services Authority (FSA).
What types of mortgage are available?
Our buy-to-let mortgages are only available on a full repayment basis.
How much can I borrow?
We decide how much you can borrow based on the expected rental income from the property. This needs to be at least 35% more than the monthly mortgage payment, to provide a safety margin for times when the property is not let.
We can lend up to 70% of the purchase price or valuation, whichever is lower. We'll take into account your personal income and any existing borrowings in deciding how much we can lend.
You can find out more by downloading our Buy-to-Let mortgages brochure and Your property, your project.
How much will it cost each month?
As soon as we know that we can help, we'll provide you with a detailed illustration showing how much your monthly repayment will be for the amount you want to borrow, over the term you require.
Can funds be released in stage payments?
Funds are released up front against the value of the property in its current state. In some instances, money can be released in stages, and as long as the loan-to-value is sufficient, unlike traditional stage payments, we're flexible as to when those stages occur.
You can find out more by downloading Your property, your project.
What happens if I repay early?
If during the first four years of the mortgage, you make capital repayments in any one month totalling more than 10% of your current debt, we will apply an early repayment charge of three months' interest on the amount repaid, calculated at the rate applicable at the time (but capped at the initial rate charged on the mortgage).
You can find out more by downloading After your mortgage completes.
Where can I find more information?
You can download a range of mortgage literature from this site, find inspiration in our resource hub or contact us to discuss your project.
We're proud to have supported over 2,000 projects that benefit the environment since we started in 1981. Here's just one example of how we've helped:
Graham’s story: a Passivhaus project
Ecology supported Graham with a mortgage to build an ultra…
I was attracted to Ecology because of their niche position in the market. They understand the principles of building to the Passivhaus standard and the fact that they have an incentive to do so built into their mortgage discounts was very attractive. Their friendly and personal approach to working with us is very much in keeping with our own way of working.
Graham, Ecology borrower
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
An early repayment charge may be payable if you repay all or part of your mortgage within the first four years.