Some new properties are sold on a shared ownership basis - where you purchase a percentage share in the property and pay a rent on the portion you don't buy. This can be an affordable way of getting onto the property ladder and buying your own home.
If you're thinking of buying a share in a residential property under a shared ownership arrangement, we may well be able to help, especially if the property has energy efficient or ecological features.
Our residential shared ownership 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 5.1% 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 properties which minimise environmental impact or help promote affordable housing and sustainable communities. Even if you don't consider yourself to be green, your shared ownership project might well be.
Shared ownership housing developments each tend to have their own locally agreed criteria as to who can apply to live in the properties. Criteria can include maximum incomes, current place of residence, birthplace, or whether you are classified as a 'key worker'.
Our residential mortgages are available to owner-occupiers, including people who are retired, and landlords. You must be over 18 to apply, and you can apply in sole or joint names. You can find out more by downloading About you.
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 Standard Variable Rate is 4.90% (the overall cost for comparison is 5.1% 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 or part and part basis
- Mortgage terms are available from 10 years up to 25 years
- We offer a range of flexible features such as payment holidays, underpayments or overpayments (terms and conditions apply).
What types of mortgage are available?
Our shared ownership mortgages are 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.
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 shared ownership mortgages, we calculate your ability to borrow at 3 times your income.
For shares of over 50% of the property, you can borrow up to 85% of the property's value, depending on the repayment basis and your income. For shares of 25% to 50% of the property, you can borrow up to 100% of the property's value, depending on the repayment basis and your income.
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. Further advances are available, for example where you are buying an additional share in the property 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:
Lydden Meadow: sustainable shared ownership
Ecology supported an affordable, energy efficient housing development in West…
We identified Ecology as being very supportive of affordable housing model. The bespoke shared ownership mortgage which they arranged for our project has been an essential part of the success of Lydden Meadow.
Buckland Newton Community Property 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.