Energy improvements mortgages
We specialise in mortgages for energy improvements, when finance is used for specific energy saving measures or renewable energy systems such as insulation or solar panels, to properties.
An energy improvements mortgage can be used to fund measures such as insulation, double or triple glazing, efficient heating systems, solar panels, photovoltaics, wind turbines, ground source heat pumps and biomass heating
Our current Standard Variable Rate is 4.65%
A mortgage of £95,300 payable over 25 years on our Standard Variable Rate, currently 4.65%, would require 300 monthly payments of £537.85.
The total amount payable would be £161,895 made up of the loan amount plus interest (£66,055) and a mortgage application fee of £300 and a valuation fee of £240 (assuming a purchase price of £200,000).
The overall cost for comparison is 4.80% APRC representative
We’ll consider lending up to four times joint or sole income subject to loan- to-value and an affordability assessment
Energy efficient homes are rewarded with discounts off our Standard Variable Rate - see details below of how our C-Change energy improvements discounts work
The minimum loan amount that can qualify for this discount is £1,000
Mortgages are available on a repayment, interest-only or part (repayment) and part (interest-only) basis, subject to eligibility
Interest-only and part interest-only mortgages are subject to an acceptable repayment vehicle
You can borrow up to 90% of the property’s value on a repayment basis, or up to 75% interest-only or part (repayment) and part (interest-only), subject to eligibility
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 £300 is payable in addition to a mortgage valuation fee
A maximum mortgage term of 30 years is available, subject to eligibility.
If your project requires planning permission or listed building consent, this will need to be in place before we lend any mortgage funds.
What we lend on
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 most property types where you are improving the energy efficiency of the property.
Our mortgages are available in the UK (England, Scotland, Wales and Northern Ireland).
Our approach to lending during your project
- We are experts in providing mortgages for energy improvements
- Our Standard Variable Rate applies during your works and our discounts are applied from the date you provide evidence that the energy improvement works have completed.
Our standard of service
The Financial Conduct Authority (FCA) has laid down detailed rules about the service we must offer on regulated residential mortgages. Under these rules, we will provide you with advice and recommendation on which of the Society's products is most suitable for you, based on your needs, preferences and affordability.
- Customer project
Jenny’s story: A simple 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, with high ceilings and flooded with light from every direction. She also wanted to create a low-energy and low-tech build, constructed from sustainable, locally sourced materials. With the support of an Ecology mortgage, Jenny achieved this ...ReadSee all projects
- Customer project
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 high above the town of Silsden in West Yorkshire. Approaching ...ReadSee all projects
- Customer project
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 that would improve their quality of life as well as reduce their carbon footprint. They chose the Passivhaus Plus standard for their build, which combines the Passivhaus approach to minimising energy requirements with on-site renewable energy generation. This means that the building ...ReadSee all projects
- Customer project
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. They wanted a home that was less costly to heat and maintain, in a location that would reduce their reliance on car travel. This is exactly what they achieved. Their new house is an energy-efficient converted ...ReadSee all projects
Ecology Building Society was rated as an ethical Best Buy for our mortgages, ISAs and savings accounts by Ethical Consumer magazine in its product guide rankings (May/June 2018 issue).
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.
For us to apply the C-Change energy improvements discount, once your work is complete you need to provide us with all applicable invoices of energy measures installed.
The discount is applied to our Standard Variable Rate when we receive invoices for completed work for eligible energy measures.
How we work out your Variable Mortgage Rate:
Our Standard Variable Rate minus C-Change discount = Variable Mortgage Rate
The C-Change energy improvement scheme offers a discount of 1% on funds borrowed for qualifying energy measure installations (listed in the table below) and is applied once work is completed and evidenced by invoices. Please note the discount is applied to funds borrowed for energy improvement measures only and our Standard Variable Mortgage Rate will apply to the rest of the mortgage.
For example, if you borrow £150,000 and £50,000 is used for energy improvements, once all work is completed and evidenced, we would apply a 1% discount from our Standard Variable Rate to the £50,000 used for energy improvements and our Standard Variable Rate would apply to the rest of the mortgage.
|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
Ground source heat pumps
Heat recovery systems
Low water-use appliances
Rain water harvesting
|4.65%||1.00% applied on funds borrowed for qualifying energy improvement works (see C-Change energy improvement checklist)||3.65% The overall cost for comparison is 4.80% APRC|
(Our 4.65% Standard Variable Mortgage Rate will apply to the rest of the mortgage)
Residential mortgage valuation fees
|Value of property not exceeding||Fee|
|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.
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.