If you're thinking of improving the energy efficiency of your live/work property, contemplating a conversion or a renovation, running a sustainable enterprise from home, or looking to build or buy a new live/work eco home, we can help.
Our part-residential 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 up to 5.75% - the overall cost of comparison is 6.0% 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 part-residential mortgages are available for live/work units and sole or jointly-owned sustainable enterprises, when these are combined with residential living space. You might be considering:
- 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.
Key features
- Our part-residential mortgages are charged at a rate of up to 5.75% (the overall cost of comparison is 6.0% 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
- Mortgages are available on repayment, interest-only and part and part basis
- Mortgage terms are available from 10 years up to 25 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
- We offer a range of flexible features such as payment holidays, underpayments or overpayments (terms and conditions apply).
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. We also consider part and part mortgages, where part of the mortgage operates on a repayment basis and part on an interest-only basis.
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, business projections 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 table below summarises the options available for our part-residential owner occupier mortgage:
| Income Multiple | Maximum loan-to-value (LTV) | |
|---|---|---|
| Repayment Basis | Interest-Only | |
| 3.0 times | 80% | 70% |
| 3.5 times | 60% | 50% |
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:
Adam and Angie’s story: from sheep dip to eco-office
Adam and Angie built an ecological workspace next door to…
Working in this beautiful space 15 yards from our own back door feels like a bit of heaven. Thank you Ecology.
Adam and Angie, Ecology borrowers
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.