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Renovation mortgage
We specialise in mortgages for renovation projects where you are improving the energy efficiency of the property in the UK. Mortgages are available for non habitable properties requiring refurbishment or non standard construction types, thatched, and listed buildings - and we even provide renovation mortgages for fire damaged properties.
Key Features
- We welcome properties that are in a poor state of repair and to be eligible they need to 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 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 retrofit discounts work
- 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)
- 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 are experts in providing mortgages for unique renovation projects and 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:
- Thatched properties
- Historic or listed buildings
- Fire damaged buildings
- Non-standard construction types, such as timber framed
- Buildings in a poor state of repair.
Our mortgages are available in the UK (England, Scotland, Wales and Northern Ireland).
Our approach to lending during your renovation project
- We release additional funds when valuations show your property has increased in value
- Our Standard Variable Rate applies during the renovation works and our discounts are applied from the date we receive evidence that the renovation work has been completed and the energy 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.
Further reading
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Customer project
Andy and Lorna’s story: A renovation and retrofit success
Project type: Renovation
Andy, an architectural designer, and Lorna, a charity development manager, wanted to improve the energy efficiency of their home, an old railway cottage in Hereford, as well as creating more space to accommodate their growing family. The original cottage was built by a railway carriage inspector in 1869, with solid brick walls and a slate roof ...
ReadSee all projects -
Customer project
Jude and Anna’s story: A new life in the country
Project type: Renovation
When Jude and Anna received a phone call from a close friend asking if they would be interested in buying a run-down workers’ cottage in the beautiful High Weald in West Sussex, the timing was less than ideal. Anna was pregnant with their daughter and they’d just had their attic converted in their home in Brighton. Despite this, they took the ...
ReadSee all projects -
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, 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
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 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 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.
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 Certificate (EPC) | EPC rating improvement | 4.65% | 0.25% for each grade 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 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.
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 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