If you're over 50 years of age and you receive a regular pension income, we may be able to offer you an interest-only residential mortgage to help you keep your mortgage payments as low as possible.
Our interest-only mortgages give you a good deal over the long term - not just for the first couple of years. We offer a competitive Standard Variable Rate (currently 4.90% - the overall cost for comparison is 5.0% APR) 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 interest-only residential 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), on shared ownership properties, and on green extensions or loft conversions. For more information, see What we lend on.
The interest-only option is only available for owner-occupiers aged 50 or over who receive regular income from a company or personal pension.
You can find out more by downloading our Interest-only loans 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 interest-only interest rate is 4.90% (the overall cost for comparison is 5.0% APR)
- 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
- Mortgage terms are available from 10 years up to 25 years
- You can borrow up to 50% of the property's value, depending on your income
- We will consider lending funds up front on land or the unimproved value or a building
- We offer a range of flexible features such as payment holidays, underpayments or overpayments (terms and conditions apply).
How much can I borrow?
We decide how much we can lend based on your income and the value of your property. If you are buying a property, this will affect the amount of deposit you will need to have available.
The maximum loan-to-value rate for an interest-only mortgage is 50%. You may be able to borrow more if at least half of the mortgage is conducted on a repayment basis.
We can lend up to three times the regular income of a sole applicant. If you are making a joint application, we will need to consider whether the mortgage repayments could still be met if one party dies.
You can find out more by downloading our Interest-only loans brochure and About you.
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.
It's important to remember that with an interest-only mortgage, the capital amount you have borrowed won't reduce over time. Eventually, you will need to repay the capital amount either from your savings or by selling the property.
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:
Chris and Lorna’s story: a live-work renovation
With Ecology’s help, Chris and Lorna converted disused agricultural outbuildings…
Something like this needs imagination. It’s a long way from what the high street lenders can understand. But it was a perfect fit for Ecology Building Society.
Chris, 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.