Buy-to-let

Key Features

  • Our current buy-to-let Variable Rate is 4.90%

  • To assess affordability the rental income derived from the property must be at least 35% more than the mortgage repayment due. We also need to evidence you have sufficient personal income to maintain your personal expenditure

  • Energy efficient homes are rewarded with discounts, which are called C-Change sustainable homes, C-Change retrofit and C-Change energy improvements, off our Variable Rate – see how C-Change discounts work, below

  • You can borrow up to 80% of the property’s value or purchase price (whichever is the lower) on a repayment or interest only basis

  • An early repayment charge may be payable if you repay all or part of your mortgage within the first two years

  • A non-refundable mortgage application fee of £350 is payable in addition to a mortgage valuation fee

  • A maximum mortgage term of 25 years is available, subject to eligibility

  • Mortgages are available on a repayment or interest-only basis, subject to eligibility

  • Applicants can only have three buy-to-let mortgages, this includes the buy-to-let mortgage they are applying for with Ecology

  • Buy-to-lets which need a renovation mortgage need to improve the Energy Performance Certificate by at least two grades
      
  • Our mortgages for buy-to-let are not regulated by the Financial Conduct Authority.
What we lend on

We are experts in providing buy-to-let mortgages for self-build, renovation, conversion projects and where you are extensively improving the energy performance of a property.  We don't have a 'tick box' approach to assessing projects –in many instances, we'll welcome projects that standard lenders may not accept. We will consider:

  • Energy efficient self-build projects
  • Renovations to existing residential properties that improve the energy efficiency
  • Barn conversion projects 

Our mortgages are available in the UK (England, Scotland, Wales and Northern Ireland).

Our approach to lending for buy-to-let mortgages
  • We release stage payments during the project as and when the value of your property increases during the works
  • Our buy-to-let Variable Rate applies during the works and our discounts are applied from the date we receive evidence that the works are completed and, if applicable, the Energy Standard rating required has been achieved.
Our standard of service

Where a mortgage is not regulated by the FCA (as shown on the 'Key features' tab), you will be provided with full information about the mortgage products available from the Society so that you can make an informed decision as to which is suitable for your requirements.

Further reading
YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

Ecology wins Mortgage Finance Gazette award

best buy_ECM

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 (May/June 2018 issue).

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C-Change discounts explained

As a building society with a unique mission to build a greener society, we lend on projects and properties that support our aims through their reduced impact on our environment. Making your home energy efficient is a major way you can support tackling climate change – while saving on your energy bills.

We reward borrowers whose properties are energy efficient (therefore have lower carbon emissions) with our C-Change discounts off our Standard Variable Rate which helps them save money on their mortgage. We call our discounts ‘C-Change discounts’ simply because we’re aiming to make a ‘sea-change’ of difference to our climate with each property or project we fund.

The level of our C-Change sustainable homes or C-Change retrofit discount that applies is based on the Energy Standard rating achieved on the self-build, renovation or conversion when the work is completed. Our C-Change energy improvements discount is based on the qualifying energy measures being installed. The discount is applied from the date we receive evidence that the work has been completed and if applicable the Energy Standard rating required has been achieved.

When your buy-to-let project is complete

For us to apply the C-Change sustainable homes or C-Change retrofit, once your work is complete you need to provide an Energy Standard certificate and, if applicable an Architect or Building Control certificate. Or, for us to apply the C-Change energy improvement discount, please send us all invoices for qualifying works.

The discounts are only applied to our Variable Rate from the date we receive evidence that the work has been completed and, if applicable, the Energy Standard rating required has been achieved.

How we work out your buy-to-let Variable Mortgage Rate:
Buy-to-let Variable Rate (VR) minus C-Change discount = Variable Mortgage Rate
Our C-Change discounts
For new builds: C-Change sustainable homes discount
Energy Standard
RatingsBuy-to-let Variable RateDiscount %Variable Mortgage Rate
PassivhausPassivhaus4.90%1.25%3.65%
Energy Performance Certificate (EPC)A or above4.90%0.75%4.15%
Energy Performance Certificate (EPC)B (SAP rating 85+)4.90%0.50%4.40%
Code for Sustainable Homes (CSH)Code Level 44.90%0.75%4.15%
Code for Sustainable Homes (CSH)Code Level 54.90%1.00%3.90%
Code for Sustainable Homes (CSH)Code Level 64.90%1.25%3.65%
Association for Environment Conscious Building (AECB)Silver4.90%0.75%4.15%
Association for Environment Conscious Building (AECB)Gold4.90%1.25%3.65%
For whole house renovations: C-Change retrofitRatingsBuy-to-let Variable RateDiscountVariable Mortgage Rate
Energy Performance Certificate (EPC) for retrofit projects EPC rating improvement4.90%0.25% per grading improvement†4.65% - 3.40%
C-Change energy improvement discountRatingsBuy-to-let Variable RateDiscountVariable Mortgage Rate
For specific energy improvements worksEvidenced via invoices and our C-Change energy improvement checklist***4.90%A 1.00% discount is applied on funds borrowed specifically for qualifying energy improvement works (see C-Change energy improvement checklist***)3.90% *
4.90% **

* on funds borrowed specifically for qualifying energy improvement works
** for funds borrowed that are not related to qualifying energy improvement works to the property
*** C-Change energy improvement checklist
† For a buy-to-let renovation mortgage you must improve by at least 2 EPC ratings

 

 

Our fees

Residential mortgage valuation fees

Value of property not exceedingFee
£100,000£180
£150,000£210
£200,000£240
£250,000£270
£300,000£300
Up to each £50,000 thereafter add£30

Please note these valuation fees apply to residential and buy-to-let applications and include VAT.

In all other instances, the fee required will be determined on a case-by-case basis and depends on the nature of the property.

A more detailed inspection, such as a Homebuyers Report can often be provided by the same valuer at a fee to be negotiated. Please advise on this point when submitting your application.

Application Fee

A non-refundable mortgage application fee of £300 is payable in addition to a mortgage valuation fee.

Early repayment charge

An early repayment charge may be payable if you repay all or part of your mortgage within the first two years.

Our services, 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 rates and charges leaflet.

Buy-to-let FAQs

Do you lend on holiday let accommodation?

We do not provide buy-to-let mortgages for holiday let or second homes, any letting must be conducted on a 6 or 12 month shorthold assured tenancy agreement.

Is there a maximum number of buy-to-let properties I can own?

We will not lend to an individual who has a portfolio of more than 3 buy-to-let properties, including the one being applied for with Ecology.

Is there a limit on the number of units I can have in a single property?

The property must not have more than 3 self-contained units.

Can the property be let to a family member?

The property cannot be let to a family member.

How to enquire

If you are interested in becoming an Ecology borrower we would love to hear from you. Complete the enquiry form below or call us on 01535 650 770





Buy-to-let mortgage enquiry

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