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Archives: FAQ - Mortgages
Housing developers’ mortgage FAQs
Do we need to provide planning permission for a new build development?
Yes, we require detailed planning permission for an application.
What deposit do we need for my mortgage?
You need a minimum deposit of 30% towards the purchase price or value of the site, whichever is the lower.
Do we still need a deposit if we 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 or property, 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 we have to complete a new build or renovation project?
Subject to planning constraints, we allow a maximum of 2 years for you to complete the project.
Do you offer stage payments?
Yes, although we do not release payments at set construction milestone stages (e.g. foundation, wall plate etc.). We release funds as and when the build progresses and release up to a percentage of the increased value of the property.
Can we have interest-only during a new build or renovation phase?
Yes, our mortgage for housing developers is an interest-only facility. Capital repayments are expected to be made from the proceeds of the sale of mortgaged property when completed in accordance with the terms detailed in your mortgage offer letter.
Does Ecology require a particular build warranty on completion of my project?
A build warranty is not a mandatory lending requirement of our mortgage and we are happy with a Building Regulation Completion Certificate. However, if you wish to take out a build warranty for the completion of the property then this is acceptable to the Society.
Do we need to have been established for a minimum period before you will lend to us?
No, we can consider proposals from applicants undertaking their first development project.
How much will our mortgage cost a month?
As soon as we know that we can help, we’ll provide you with an indicative illustration, showing how much your monthly repayment will be for the amount you want to borrow, over the term you require.
Our fees
- A non-refundable mortgage application fee is payable on submitting a formal application
- An offer acceptance fee is payable on acceptance of a formal mortgage offer from us
- We will agree a valuation fee with you using a local qualified chartered surveyor. Payment of the fee agreed will be required from you in advance of the Society formally instructing the surveyor to undertake a valuation report.
Our service, fees, tariffs and charges
The Society reserves the right to amend existing services and charges, or to introduce new ones.
Any change to charges will only reflect the increased operational costs of providing the service. You will always be notified before any changes are implemented.
For further details and tariff information please see our commercial rates and charges leaflet.
How to apply
Charities and community groups FAQs
Do we need to provide planning permission for a new build development?
Yes, we require detailed planning permission for an application.
What information do we need to progress a mortgage application?
We will need to be satisfied that you have enough income or surplus to meet the mortgage repayments. We’ll also need to see a business plan showing the forecast income and expenditure for the organisation, together with copies of your past three years’ accounts.
What deposit do we need for our mortgage?
You need a minimum deposit of 25% of the purchase price or value of the property(ies) being mortgaged, whichever is the lower.
Do we still need a deposit if we 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 or property, 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 we have to complete a new build or renovation project?
Subject to planning constraints, we allow a maximum of 2 years for you to complete the project.
Do you offer stage payments?
Yes, although we do not release payments at set construction milestone stages (e.g. foundation, wall plate etc.). We release funds as and when the build progresses and release up to a percentage of the increased value of the property.
Can we have interest-only during a new build or renovation phase?
Yes, we can consider an interest-only period during the construction or renovation phase.
Does Ecology require a particular build warranty on completion of my project?
A build warranty is not a mandatory lending requirement of our mortgage and we are happy with a Building Regulation Completion Certificate. However, if you wish to take out a build warranty for the completion of the property then this is acceptable to the Society.
Do we need to have been established for a minimum period before you will lend to us?
Yes, you need to have a minimum of three years’ trading or accounting history
How much will our mortgage cost a month?
As soon as we know that we can help, we’ll provide you with an indicative illustration, showing how much your monthly repayment will be for the amount you want to borrow, over the term you require.
Our fees
- A non-refundable mortgage application fee is payable on submitting a formal application
- An offer acceptance fee is payable on acceptance of a formal mortgage offer from us
- We will agree a valuation fee with you using a local qualified chartered surveyor. Payment of the fee agreed will be required from you in advance of the Society formally instructing the surveyor to undertake a valuation report
- An early repayment charge may be payable if you repay all or part of your mortgage within the first two years.
Our service, fees, tariffs and charges
The Society reserves the right to amend existing services and charges, or to introduce new ones.
Any change to charges will only reflect the increased operational costs of providing the service. You will always be notified before any changes are implemented.
For further details and tariff information please see our commercial rates and charges leaflet.
Energy Standards
| For new build projects: C-Change sustainable homes | Ratings | Variable Rate* | Discount % | Variable Mortgage Rate |
|---|---|---|---|---|
| Passivhaus | Passivhaus | 4.65%-5.50% | 1.25% | 3.40%-4.25% |
| Energy Performance Certificate (EPC) | A or above | 4.65%-5.50% | 0.75% | 3.90%-4.75% |
| Energy Performance Certificate (EPC) | B rated | 4.65%-5.50% | 0.50% | 4.15%-5.00% |
| Code for Sustainable Homes (CSH) | Code Level 4 | 4.65%-5.50% | 0.75% | 3.90%-4.75% |
| Code for Sustainable Homes (CSH) | Code Level 5 | 4.65%-5.50% | 1.00% | 3.65%-4.50% |
| Code for Sustainable Homes (CSH) | Code Level 6 | 4.65%-5.50% | 1.25% | 3.40%-4.25% |
| Association for Environment Conscious Building (AECB) | Silver | 4.65%-5.50% | 0.75% | 3.90%-4.75% |
| Association for Environment Conscious Building (AECB) | Gold | 4.65%-5.50% | 1.25% | 3.40%-4.25% |
| For renovations: C-Change retrofit | Ratings | Variable Rate* | Discount % | Variable Mortgage Rate |
|---|---|---|---|---|
| Energy Performance Certification (EPC) | EPC rating improvement | 4.65%-5.50% | 0.25% for each improvement in the EPC rating | 3.15% -5.25% |
| For energy installations: C-Change energy improvement discount | Ratings | Variable Rate* | Discount % | Variable Mortgage Rate |
|---|---|---|---|---|
| For specific energy improvement works | Evidenced with invoices and our C-Change energy improvement checklist | 4.65%-5.50% | A 1.00% discount is applied on funds borrowed specifically for qualifying energy improvement works (see C-Change energy improvement checklist) | 3.65% - 4.50% on funds borrowed specifically for qualifying energy improvement works 4.65%-5.50% for funds borrowed that are not related to qualifying energy improvement works to the property |
*The Variable Rate applicable to your project is dependent on the type of organisation you are and whether you have been established for more than three years. For all Housing Associations, our current Variable Rate is 4.65%, for other new and emerging community-led housing groups with less than three years’ track record, our current Variable Rate is 5.50% and for established other community-led housing groups our current Variable Rate is 4.85%.
When your project is complete
For us to apply the applicable C-Change sustainable homes, C-Change retrofit or C-Change energy improvements discount, once your build, renovation or conversion is complete you need to provide an Energy Performance Certificate and an Architect’s or Building Control sign off of works as applicable.
The discount is only applied to our Variable Rate when we receive evidence that the work has been completed and the Energy Standard rating required has been achieved.
