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Renovation mortgages
We specialise in mortgages for renovation projects where you are extensively improving the energy efficiency of the property.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
Key Features
We provide a straightforward, individual mortgage service for renovation projects
We welcome properties that are in a bad state of repair but to be eligible, they must be classified as existing residential properties
Our current Standard Variable Rate is 4.65%
Representative example:
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 representativeWe’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 retrofit discounts work
Mortgages are available on a repayment, interest-only or part (repayment) and part (interest-only) basis
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)
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.
Our approach to lending during your renovation project
- We’ll lend up to 90% of the purchase price or current value of the property (whichever is the lower) on a repayment mortgage
- If you require funds for the renovation, we can stage release payments of up to 90% of the value as the works to the property progress
- Our Standard Variable Rate applies until the date we receive evidence that both the renovation work has been completed and the Energy Standard rating required has been achieved.
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. 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.
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 reject. We will consider:
- Thatched properties
- Historic listed buildings
- Fire damaged buildings
- Non-standard construction types, such as timber
- Old terraced buildings in a bad state of repair.
Our mortgages are available across England, Scotland, Wales and Northern Ireland.
Further reading
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Customer project
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 -
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 in Kildwick, high above the town of Silsden in West ...
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 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 -
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. “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).
As a building society with a unique mission to build a greener society, we only 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, and therefore have lower C02 emissions, and help them save money on their mortgages with our C-Change discounts. 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, C-Change retrofit or C-Change energy improvements discount that applies is based on the Energy Standard rating achieved on the self-build, renovation, conversion or energy improvements when the work is completed. The discount is applied from the date we receive evidence that the work has been completed and the required Energy Standard rating has been achieved.
Our Standard Variable Rate applies until we receive evidence that the Energy Standard rating required has been achieved and, if applicable, work has been completed. Once your renovation is complete, you need to provide a copy of the final Energy Performance Certificate (EPC).
A discount of 0.25% will apply to our Standard Variable Rate for every grade improvement in your home’s EPC rating and the discount will be applied to all your mortgage balance.
How we work out your Variable Mortgage Rate:
Standard Variable Rate (SVR) minus C-Change retrofit discount = Variable Mortgage Rate
The C-Change retrofit scheme offers a discount of 0.25% from our Standard Variable Rate for each rating improvement in your home’s Energy Performance Certificate (EPC). This could be either its Energy Efficiency or Environmental Impact rating – whichever is the highest.
For example, if either EPC rating improves from E to C after the works to the property are completed, a discount of 0.50% will be available on the whole of the mortgage, for the duration of the loan. The discounts are deducted from our Standard Variable Rate (currently 4.65% – the overall cost for comparison is 4.80% APRC).
To apply the discount, we need to receive an EPC before you undertake works to your home and another EPC once works are completed. We will compare the revised EPC with the original rating, and apply the discount based on the grade improvement achieved. Until we have received your revised EPC, we will charge interest at our Standard Variable Rate. You can find out more by downloading Our C-Change discount leaflet.
| Energy Standard | Energy Efficiency or Environmental Impact Rating | SVR (Standard Variable Rate) | Discount % | Variable Mortgage Rate |
|---|---|---|---|---|
| Energy Performance Certification (EPC) | EPC rating improvement | 4.65% | 0.25% for each improvement in the EPC rating | 4.40 -3.15% The overall cost for comparison is 4.80% APRC |
| Energy Standard | Ratings | SVR (Standard Variable Rate) | Discount % | Variable Mortgage Rate |
|---|---|---|---|---|
| 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 |
Residential mortgage valuation fees
| Value of property not exceeding | Fee |
|---|---|
| £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 fees apply to residential and buy-to-let applications.
In all other instances, the fee required will be determined on a case-by-case basis.
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. Depending on the nature of the property, the fee required may on occasion differ from this scale. Valuation fees include VAT.
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.
Do I need to provide planning permission for my renovation?
Planning permission is required from your Local Authority if you are extending or altering the property and this requires formal planning permission.
What information do I need to progress my renovation mortgage application?
You’ll need to have a specific property renovation in mind and provide details of material and labour costs, the current Energy Performance Certificate (EPC) of the property and the projected EPC rating when you complete your renovation.
What deposit do I need for my renovation?
You need a 10% minimum deposit to purchase the property and a further 15% – 20% of total build costs to start your renovation.
Do I still need a deposit for my renovation if I already own the property?
No, you don’t always need a deposit; we can lend based on the value of your property to start the renovation, providing you already own the property and it’s mortgage-free. Also, we can help you repay any outstanding finance on the property if you need it.
Do borrowers who are planning to renovate need to show how they plan to improve the property’s energy efficiency?
Any project we support needs to show details of the proposed renovation with an indication of the Energy Standards you are renovating to, and how the renovation costs are expected to be funded with savings and mortgage finance. We don’t just lend on the property purchase.
How long do I have to complete the renovation?
We allow a maximum of 2 years for you to complete the renovation, although we encourage you to complete earlier to benefit from our C-Change retrofit 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.
Do you offer stage payments for a renovation?
Yes, we release funds as and when the renovation progresses and release up to a percentage of the increased value of the property.
Can I have interest-only mortgage during the renovation 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 renovation property have to be my main residence?
Yes, although we do offer a buy-to-let mortgage. Please bear in mind that we don’t offer mortgages for second homes, holiday homes or homes classed as mobile planning.
If you're interested in joining Ecology as a borrower, we'd love to hear from you.
Because we take an individual approach to every mortgage, we like to discuss your application with you over the phone to make sure it fits our criteria and to answer any questions you have.
You can contact us on 01535 650 770, or you can email us via our enquiry form. If your enquiry is urgent, please contact us by phone.
When you get in touch with us, it's helpful if you can provide us with some basic information about your project:
- what you want to do (especially the environmental aspects of your project)
- how much you'll need to borrow
- how you intend to finance it.
For residential mortgage enquiries, please contact one of our mortgage advisors to discuss your project and your mortgage requirements.
You can find out more about the process by downloading The application process: a step-by-step guide.