We see housing co-operatives as part of a more sustainable, community-based lifestyle. If you're part of a new or existing co-operative and want to purchase or convert a property, we can help.
Our housing co-operative mortgages give you a good deal over the long term - not just for the first couple of years. We offer a competitive interest rate (5.10% to 5.75%) 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.
We lend to formally constituted housing co-operatives and established worker co-operatives. We normally require a housing co-operative to be made up of at least four occupied housing units.
We'll consider lending on a wide range of properties for housing co-operatives, including those that would often by turned down by other lenders, for example:
- Rescuing a derelict building
- Converting a disused building into a home
- Buying back-to-back houses
- Ecological new builds.
For more information, see Mortgage finance for housing co-operatives.
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 housing co-operatives interest rate ranges from 5.10% to 5.75%
- 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
- Mortgages are available on a repayment basis, with interest-only periods possible for up to 12 months to support new developments
- Mortgage terms are available from 10 years up to 30 years
- You can borrow up to 80% of the property's value, depending on the repayment basis and your income
- 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?
We like offer mortgages 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 Your mortgage.
How much can I borrow?
We'll lend up to 80% of the value of the property, and can release further funds if the value of the property is increased through building or renovation work.
We will need to be satisfied that the co-operative will have enough income from its members to meet the mortgage repayments, and we'll need to see a business plan showing the expected costs and income for the housing units.
You can find out more by downloading About you 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:
Bishop’s Castle Community Land Trust: affordable local ownership
With a development mortgage from Ecology, Bishop’s Castle Community Land…
Our ethos of mutuality and co-operation is an important reason why we've attracted over 200 member shareholders. It made sense for us to find a lender that would recognise and support our efforts to ensure the homes were built to a high standard of energy efficiency, and in choosing the Ecology we found the perfect match for our project.
Bishop's Castle Community Land Trust
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.