We are committed to lending that protects the environment and helps build a greener society. That's why we provide mortgages to support and develop organic farming and smallholdings, where organic accreditation has been applied for or granted.
Our mortgages for organic farms and smallholdings support:
- The purchase of an organic farm or additional land for expansion
- Building additional facilities such as roadside shops
- Building residential accommodation on an existing organic farm, even when agricultural restrictions apply.
Our organic farm and smallholding mortgages give you a good deal over the long term - not just for the first couple of years. We keep our fees as low as possible and we offer a flexible, individual service.
Our mortgages for organic farms and smallholdings are designed to support you if you want to buy organic farmland, expand an existing organically managed site or build your own home on an existing organic site.
We'll consider supporting individuals, trusts or limited companies that operate organically.
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 organic farm or smallholding rate for acquiring land alone is up to 6.75%, although where a residential property is also included, a rate of up to 5.75% will apply, in line with our part-residential mortgages
- 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
- Mortgages for organic farms and smallholdings are available on a repayment basis, although we may be able to offer an interest-only period while you are developing your property or establishing your business
- Mortgage terms are available from 10 years up to 25 years
- You can borrow up to 70% of the property's value (more if it is residential property) depending on the repayment basis and your income, and we will lend up to three times joint income
- We offer a range of flexible features such as initial interest only periods, seasonal payment structures, payment holidays, underpayments or overpayments (terms and conditions apply)
- 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.
If you want to make any of your mortgage payments on an interest-only basis, the loan available will be 10% less than the maximum.
You can find out more by downloading Your mortgage.
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.
For organic farms and smallholdings, we'll lend up to three times your income. We'll lend up to 70% of the value of the land alone or land and agricultural buildings, and up to 85% for residential property. We can release further funds if the value of the property is increased through building or renovation work.
For more information, download Mortgages for organic farms and smallholdings 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:
Skyeberries: sustainable self-build on an organic smallholding
With Ecology’s help, Ian built his own home while running…
I chose EBS because they had such a good attitude to the mortgage on my previous house. They are far easier to deal with when it comes to anything out of the ordinary and are straightforward with the legal arrangements, insurance etc. I want to take the eco approach anyway, but love that they actively encourage it!
Ian, 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.