Housing developers mortgages
We specialise in providing mortgages for small-scale housing developers seeking to build or renovate residential properties in a sustainable manner to sell.
ANY HOME OR PROPERTY GIVEN AS SECURITY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR OTHER DEBTS SECURED ON IT
- Our current Variable Rates for Housing Developers range from 4.65% to 6.65%
- We consider each application individually and where appropriate, a site visit may be arranged with you to discuss your requirements.
- Mortgages are available on an interest-only basis
- Interest payments are required during the project and are payable monthly in arrears
- We expect the mortgage capital to be fully redeemed via the sale of your completed properties
- Mortgage terms are available from 6 months to 2 years, subject to eligibility
- You can borrow up to 70% of the property’s value, subject to eligibility
- We will consider lending funds up front on land or the unimproved value of a building with outline planning consent
- Stage release payments are available as the value of property increases via building or renovation work, subject to our maximum loan-to-value terms at any time.
Our mortgages for Housing Developers are not regulated by the Financial Conduct Authority.
We provide mortgages for housing developers
Our housing developers’ mortgage is for residential property developers embarking on new projects, which may involve building, renovating or converting a number of properties for sale. These are short-term mortgages and are open to applications from individuals, partnerships and limited companies.
You do not need to have an existing track record to be considered, although if you have an existing business, we will ask to see your past three years’ business accounts where appropriate.
What we lend on
We require an appreciable standard of energy efficiency for all the projects we support.
New homes must achieve a minimum of an “A” rating under the Energy Performance Certificate (EPC) scheme for us to consider lending.
We particularly encourage developments that adopt the Passivhaus standards.
If you are intending to undertake a renovation or conversion project, we will expect the use of energy efficient measures and sustainable materials to be central to the project.
We do not lend for:
- The creation of single high-value “luxury” homes for speculative sale
- Properties intended to be sold or leased as holiday homes.
Our mortgages are available across England, Scotland, Wales and Northern Ireland.
Jenny’s story: A simple, beautiful, and light urban Passivhaus
Project type: Self-build
In her mind’s eye, Jenny wanted a self-built home that was simple and beautiful, plain but not austere, low energy and low tech, built with sustainable materials wherever affordable, with high ceilings and flooded with light from every direction. She achieved this, and much more, as well as a certified Passivhaus, with the support of Fran and ...ReadSee all projects
Nina and Phil’s story: Big love for a smallholding
Project type: Woodlands
Frustrated by the ethos and stresses of many modern businesses, Nina and Phil wanted to do things differently. Their dream of running a sustainable, low impact smallholding began in 2007. After viewing several parcels of land, the couple identified an inspiring fifteen-acre plot in Kildwick, high above the town of Silsden in West ...ReadSee all projects
Rob and Karin’s story: the first certified Passivhaus Plus in the UK
Project type: Self-build
Rob and Karin set out to build a comfortable family home which would improve their quality of life as well as reducing their carbon footprint. They chose the Passivhaus Plus standard for their build, which combines the Passivhaus approach to minimise their home’s energy requirements with energy generation, so that the home produces more energy ...ReadSee all projects
Irene and David’s story: Converting to Passivhaus
Project type: Conversion
After living happily in a Victorian house on the outskirts of Ripon, North Yorkshire, for 20 years, Irene and David were ready for a change. “We loved the house, but it required a lot of maintenance and was costly to heat.” Their new house, in contrast, is an energy efficient converted stable block, just a seven-minute walk from the centre of ...ReadSee all projects
Ecology Building Society was rated as an ethical Best Buy for our mortgages and savings accounts by Ethical Consumer magazine in its product guide rankings (July/August 2016 issue).
- A non-refundable mortgage application fee of 0.50% of the sum applied for is payable on submitting a formal application
- An offer acceptance fee of 0.50% of the sum approved 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.
Do we need to provide planning permission for a new build development?
Yes. We need at least outline planning permission to start the application process and detailed planning permission before the mortgage is released.
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.
Because we take an individual approach to every mortgage, we like to discuss your project with you before you make a formal application, to make sure it fits our criteria and to answer any questions you have.
- A breakdown of costs for your project
- Designs and specifications of materials and a schedule of the ecological and energy efficient measures planned, including a projected SAP calculation, EPC report or PHPP assessment as appropriate.
- A project cash flow forecast including projected draw downs that demonstrate how and when mortgage funds will be required and utilised
- Evidence that sufficient capital is available to meet your monthly interest payments and contingencies as well as ensuring that you can deliver the project within our maximum loan-to-value criteria throughout the mortgage.