Archives: FAQ - Mortgages

What is off-site construction?

Off-site construction is sometimes referred to as modular or Modern Methods of Construction (MMC) housing. It’s constructed off-site, normally in a factory with your property then transported to your land and constructed in a very quick, accurate and energy-efficient manner.

Is this off-site build mortgage available through all suppliers?

Our off-site build mortgage is only available when you are purchasing your build through one of our selected suppliers – please see ‘our suppliers’ section.

Which off-site build mortgage is most suitable for me?

We offer a range of mortgages to accommodate all customer types. We recognise that significant, upfront payments are required to the manufacturer to ensure the property can be funded and build off-site. We identified this as a general problem in the off-site market which is why we developed our innovative off-site build (advanced payment) mortgage.

Do I need to provide planning permission for my build?

Yes. We need at least outline planning permission to start the application process and detailed planning permission before the mortgage is released.

What information do I need to progress a mortgage application?

You’ll need to have a specific plot and build in mind which needs to be supported by detailed plans, including a breakdown of the building contract costs provided from your building manufacturer.

What deposit do I need for my build?

You need a 20% minimum deposit to buy the land and a further 15% – 20% of total build costs to start your build. The level of deposit you have available will determine which off-site build mortgage you take from our mortgage range.

Do I still need a deposit for my build if I already own the land and have planning permission?

No, you don’t always need a deposit; we can lend based on the value of your land to start the build, providing you already own the land and it’s mortgage-free. Also, if you need us to, we can help you repay any outstanding finance on the land.

How long do I have to complete the build?

Subject to planning constraints, we allow a maximum of 2 years for you to complete the self-build, although we encourage you to complete earlier to benefit from our C-Change sustainable homes discount which is applied to our Standard Variable Rate from the date we receive evidence that both the work has been completed and the Energy Standard rating required has been achieved.

Can I have interest-only during the build phase?

We offer an interest-only mortgage only when you have a qualifying repayment vehicle to support this for example an established ISA, endowment policies or Pension Plan.

Does the build property have to be my main residence?

Yes. Please bear in mind that the property can’t be a second or holiday home or classed as mobile planning.

We offer a cashback for eligible residential mortgage applications for projects including installation of a heat pump. If you qualify, you can claim:

• £500 for when you install an air source heat pump
• £1,000 cashback for when you install a ground source heat pump

To be eligible:

• Make sure that your installer is MCS accredited
• This offer applies to our self-build, renovation, conversion and shared ownership mortgages.
• Your property must have loft and cavity wall insulation

How to obtain the cashback

The process is simple and part of the mortgage process.

• When speaking to your appointed mortgage broker or one of our mortgage advisors, they will check your eligibility for the cashback.
• The cashback value and installers accreditation requirements and how to claim will be shown in your personalised illustration and any Offer of Loan.
• The cashback is payable within 18 months of completing your mortgage (i.e. when you receive your first stage release/advance) and with the production of an MCS installer certificate.
• The cashback will be paid when we receive a completion certificate confirming that the heat pump has been installed by an approved installer.  If you qualify, your cashback will be paid into the account you use to make your monthly mortgage payments.

Other important information

Please be aware that Ecology is not responsible for ensuring the quality of the work carried out and the costs provided.  You should carry out your own checks to ensure the costs and the supplier is suitable. If you find that you are not happy with the work carried out, you should speak to your supplier in the first instance. If the work carried out is covered under a scheme provider (e.g. MCS) you should also contact the appropriate provider.

We offer a cashback for eligible residential mortgage applications for projects that include the installation of a heat pump. If you qualify, you can claim:

• £500 cashback for when you install an air source heat pump.
• £1,000 cashback for when you install a ground source heat pump.

To be eligible:

• Make sure that your installer is MCS accredited
• This offer applies to our self-build, renovation, conversion and shared ownership mortgages
• Your property must have existing loft and cavity wall insulation.

How to obtain the cashback

The process is simple and part of the mortgage process.

• When speaking to your appointed mortgage broker or one of our mortgage advisors, they will check your eligibility for the cashback.
• The cashback value and installers accreditation requirements and how to claim will be shown in your personalised illustration and any Offer of Loan.
• The cashback is payable within 18 months of completing your mortgage (i.e. when you receive your first stage release/advance) and with the production of an MCS installer certificate.
• The cashback will be paid when we receive a completion certificate confirming that the heat pump has been installed by an approved installer.  If you qualify, your cashback will be paid into the bank account you use to make your monthly mortgage payments.

Other important information

Ecology is not responsible for ensuring the quality of the work carried out and the costs provided.  You should carry out your own checks to ensure the costs and the supplier is suitable. If you find that you are not happy with the work carried out, you should speak to your supplier in the first instance. If the work carried out is covered under a scheme provider you should also contact the appropriate provider.

An example of a scheme provider is the Microgeneration Certificate Scheme (MCS) that are the standards and quality assurance organisation for renewable heat technologies such as solar thermal, air/ground source heat pumps and biomass boilers.

We offer a cashback for eligible residential mortgage applications for projects that include the installation of a heat pump. If you qualify, you can claim:

• £500 cashback for when you install an air source heat pump.
• £1,000 cashback for when you install a ground source heat pump.

To be eligible:

• Make sure that your installer is MCS accredited
• This offer applies to our self-build, renovation, conversion and shared ownership mortgages
• Your property must have existing loft and cavity wall insulation.

How to obtain the cashback

The process is simple and part of the mortgage process.

• When speaking to your appointed mortgage broker or one of our mortgage advisors, they will check your eligibility for the cashback.
• The cashback value and installers accreditation requirements and how to claim will be shown in your personalised illustration and any Offer of Loan.
• The cashback is payable within 18 months of completing your mortgage (i.e. when you receive your first stage release/advance) and with the production of an MCS installer certificate.
• The cashback will be paid when we receive a completion certificate confirming that the heat pump has been installed by an approved installer.  If you qualify, your cashback will be paid into the bank account you use to make your monthly mortgage payments.

Other important information

Ecology is not responsible for ensuring the quality of the work carried out and the costs provided.  You should carry out your own checks to ensure the costs and the supplier is suitable. If you find that you are not happy with the work carried out, you should speak to your supplier in the first instance. If the work carried out is covered under a scheme provider you should also contact the appropriate provider.

An example of a scheme provider is the Microgeneration Certificate Scheme (MCS) that are the standards and quality assurance organisation for renewable heat technologies such as solar thermal, air/ground source heat pumps and biomass boilers.

Our Sustainable Homes discounts support new builds, existing homes and retrofits that achieve particular energy standards (see table). There are three tiers of discount available, which are linked to the energy standard of your property:

Energy Standard	Ratings	SVR (Standard Variable Rate)	Discount %	Variable Mortgage Rate
Passivhaus	Passivhaus	4.65%	1.25%	3.40%. The overall cost for comparison is 4.80% APRC
Passivhaus	EnerPHit or EnerPHit+i	4.65%	1.25%	3.40%. The overall cost for comparison is 4.80% APRC
Passivhaus	EnerPHit (PHPP modelled)	4.65%	0.75%	3.90%. The overall cost for comparison is 4.80% APRC
Energy Performance Certificate (EPC)	A or above	4.65%	0.75%	3.90%. The overall cost for comparison is 4.80% APRC
Energy Performance Certificate (EPC)	B (SAP rating 85+)	4.65%	0.50%	4.15%. The overall cost for comparison is 4.80% APRC
Association for Environment Conscious Building (AECB)	Silver	4.65%	0.75%	3.90%. The overall cost for comparison is 4.80% APRC
Association for Environment Conscious Building (AECB)	Gold	4.65%	1.25%	3.40%. The overall cost for comparison is 4.80% APRC

You will be eligible for the discount on completion of the works and when you provide supporting invoices that show these works are completed. We will then confirm your discount and what your reduced mortgage repayments will be.

The monetary spend on the qualifying works will be eligible for a 1% reduction from your interest rate. The remaining amount of your mortgage will be charged at your standard interest rate.

The discount is payable for the duration of your mortgage term held with Ecology.

Energy improvement measures which can benefit from the discount	SVR (Standard Variable Rate)	Discount % applied to funds used for energy improvements	Variable Mortgage Rate
Floor, wall and roof insulation Double or triple glazing Wet underfloor heating systems High efficiency condensing boilers Solar water heating Photovoltaics Wind turbines Ground source heat pumps Biomass heating Heat recovery systems Low water-use appliances Rain water harvesting	4.15%	1.00% applied on funds borrowed for qualifying energy improvement works (see C-Change energy improvement checklist)	3.15% The overall cost for comparison is 4.30% APRC (Our 4.15% Standard Variable Mortgage Rate will apply to the rest of the mortgage)

The following list is under constant review and, where possible, we’ll incorporate your suggestions for inclusion. Please see our C-Change leaflet for more information on each of these measures.

• Installing floor, wall and roof insulation
• Double or triple glazing
• Wet underfloor heating systems
• Installing a condensing boiler
• Solar water heating
• Photovoltaics
• Wind turbines
• Ground source heat pumps
• Biomass heating
• Heat recovery systems
• Installing low water-use appliances
• Rain water harvesting

A 0.25% discount will be awarded for each grade improvement made to your property. We will then reduce your mortgage interest rate by the appropriate discount and this discount is payable for the duration of the mortgage term held with Ecology.

Example

If your property was given an EPC ‘E’ rating but, following your renovation works, it achieved a ‘B’ rating, you would have improved the EPC by three grades and so would be awarded a 0.75% discount from your mortgage (0.25% for each grade improvement).

You will need to provide a final EPC for your property once all your renovation works are completed.

We will then compare the original energy performance rating of the property when you first took out the mortgage to the new one supplied following the completion of all the renovation works.