Businesses, charities and community groups have a vital role to play in protecting the environment and building sustainable communities. We're proud to support a wide range of organisations through our commercial mortgages, and our Business Development Team take an individual approach to every project.
Our commercial mortgages are available for:
- Established environmental businesses
- Registered charities and voluntary organisations
- Community owned enterprises
- Fairtrade businesses
- Ecological property developers.
A commercial mortgage may be available to any form of business, community or charitable organisation which benefits the environment or contributes to the sustainability of a local community.
This could include:
- A vegan or vegetarian restaurant
- A community renewable energy project
- An environmental technology business
- A charity or voluntary organisation that supports sustainable aims
- A rural post office or corner shop that serves the local community.
Please note that we don't provide loans for the start up of new businesses and we need to see the last three years' business accounts.
Commercial mortgages are also available for property developers embarking on small-scale development projects, which may involve renovating, converting or building a number of properties for sale. These are short-term mortgages available to builders and individuals. You can find out more by downloading our Small scale development finance leaflet.
For an initial discussion to find out whether your project may be suitable for an Ecology mortgage, please call our Business Development Team on 01535 650774.
Key features
- Our commercial mortgage interest rates are negotiable, although we currently operate a minimum rate for charities and community organisations of 4.50%, and a minimum rate for businesses and developers of 4.90%
- We offer low initial fees and calculate interest on a daily basis, reducing the overall lifetime cost of your borrowing
- We consider each application individually and will visit you to discuss your project on site
- Mortgages are available on a capital and interest repayment basis, with interest-only periods possible for up to 2 years to support new developments
- Mortgage terms are available from 10 years up to 25 years
- You can borrow up to 80% of the property's value
- We will consider lending funds up front on land or the unimproved value or a building
- This product is not regulated by the Financial Services Authority (FSA).
What types of mortgage are available?
Our commercial mortgages are generally available on a repayment basis, where each monthly payment includes the interest and a proportion of the capital sum borrowed. This means your debt gradually decreases year by year. An initial interest-only period is also possible by negotiation.
You can find out more by downloading Lending for community gain.
For small-scale developers, we expect the capital to be repaid via the sale of completed properties, and our loans are available for a period of between six months and two years. Interest payments are required during the project and are payable six monthly in arrears.
You can find out more by downloading Small scale development finance.
How much can I borrow?
We'll lend up to 70% of the value of the property, or up to 80% if you are a registered charity, and we can release further funds if the value of the property is increased through building or renovation work.
We will need to be satisfied that you will have enough income from the business or organisation to meet the mortgage repayments, and we'll need to see a business plan showing the expected costs and income for the project, together with copies of the past three years of your accounts for existing businesses.
For more information, contact our Business Development Team via loans@ecology.co.uk or by calling 0845 674 5566 for an initial discussion.
How much will it cost each month?
As soon as we know that we can help, we'll provide you with an indicative quotation, 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 or land 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.
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:
Sue’s story: affordable living in a sustainable home
With Ecology’s help, Sue purchased an energy efficient affordable home…
It’s been lovely dealing with Ecology to arrange my mortgage. I was treated as an individual rather than a “ticklist”. I’m looking forward to seeing the rest of the site developed and being part of a really nice community.
Sue, 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.