Self-build

Self-build mortgage

If you’re inspired to design and build an energy-efficient self-build property, our award-winning self-build mortgage has been designed with you in mind

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Your home may be repossessed if you do not keep up repayments on your mortgage

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Trusted since 1981

Pioneers in providing energy-efficient self-build mortgages

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Experts in specialist mortgages

We’ve lent to over 3,500 unique properties and projects

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Flexible decision making

We take a case-by-case approach to every project

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Discounts for energy-efficiency

Our C-Change discounts reward you for creating an energy-efficient home

Flexible stage payments

We offer flexible stage payments during the build

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Open to the unusual

We’ll consider a wide range of non-standard construction types

We are experts in providing mortgages for unique self-build projects and we don’t have a ‘tick box’ approach to assessing these types of plans – in many instances, we’ll welcome builds that standard lenders may not accept.

Our self-build mortgages are available to a wide range of self-builders.  Whether it’s a competent DIY approach, custom build, self-managed right through to fully managed by a main contractor, we will consider lending.

What buildings qualify?

If you’re planning to build an energy-efficient, self-build property, we’re here to help.

At Ecology, we’re not put off by the construction type; we’ll support many types of construction techniques including those using non-standard materials and modern methods of construction. If we can see your self-build will be energy efficient using sustainable and where possible, locally sourced materials, we’ll consider lending.

We’ll lend on:

  • Timber frame and timber clad
  • Non-traditional such as straw bale, rammed earth, cob
  • Modern Methods of construction built off-site
  • Structurally insulated panels
  • Insulated concrete forms
  • Builds that contain renewables such as photovoltaics, solar thermal, heat pumps, etc.

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

How does the mortgage work?

We’ll lend to support the purchase of the plot and the costs of your self-build project.

Outline planning permission needs to be in place to apply for the mortgage and detailed planning needs to be granted before any mortgage funds are released.

Normally, we’ll release up to 80% of the plot purchase price or value of the property if you already own the land and subsequently, the money required to cover the build costs. As you continue with your build, staged payments of up to 80% of your increased property value as the build progresses will be released – this will help you keep tabs on your budget and planning.

This type of mortgage may be suitable if you are able to make a 20% deposit for your plot and further funds to commence the early stages of the build.  We normally recommend 20% of your total build budget as a good starting point to begin your self-build project.

Once your self-build is complete and you achieve the appropriate energy certificate, we can lower your interest rate through our C-Change discounts.

Our standard of service

We’re committed to always giving you the best service that we can, with over 95% of Ecology borrowers rating us as very good or excellent.

You can speak directly to our dedicated team of specialist mortgage advisers who are experts in self-builds, renovations and retrofits. We consider every project on a case-by-case basis and have extensive experience in non-standard properties, energy efficiency improvements and ecologically sound building practices.

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 a recommendation on which of the Society’s products is most suitable for you, based on your needs, preferences, and affordability.

Self-build Mortgage

4.15% interest rate
4.40% APRC overall cost for comparison
£799 application fee
80% maximum loan-to-value
  • Energy efficient self-build rewarded through our C-Change discounts from 0.50% to 1.25%.
  • Ability to overpay by up to 10% per annum over the first 2 years. Any amount above 10% will incur an early repayment charge.
  • Borrow up to 80% of the property’s value on a repayment basis, or up to 65% interest-only (or part repayment and part interest-only).
  • All self-build projects must show they will achieve a minimum SAP rating of 88.

Representative example

A mortgage of £95,300 payable over 25 years on a variable rate of 4.15% would require 300 monthly payments of £510.96. The total amount payable would be £154,553.92 made up of the loan amount plus interest (£58,214.92) and a mortgage application fee of £799 and a valuation fee of £240 (assuming a purchase price of £200,000).

The overall cost for comparison is 4.40% APRC representative.

APRC (Overall Percentage Rate of Change) shows you, as a percentage, the annual cost of a secured loan or mortgage. It brings together all charges (such as fees and other costs), calculated as if you kept your secured loan or mortgage for the full term without changing it.

  • We’ll lend based on a full affordability assessment.
  • An early repayment charge may be payable if you repay all or part of your mortgage within the first three years.
  • A non-refundable mortgage application fee of £799 is payable in addition to a mortgage valuation fee.
  • Mortgages are available on a repayment, interest-only or part (repayment) and part (interest-only) basis, subject to eligibility.
  • Borrowers must be aged 18 or over.  This mortgage is only available to UK residents.
  • 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.

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Our awards

Good With Money Good Egg award - 2019

NaCSBA Gold Partner 2021

NaCSBA Gold Partner - 2019

Best Buy Mortgages & Savings - 2020

Benefit from our energy-efficiency discounts

95% of our residential mortgage customers are eligible for one of our C-Change discounts, which are designed to reward you for improving your home’s energy efficiency. So, not only can you enjoy reduced energy bills while shrinking your carbon footprint, you can get a lower rate on your mortgage, too.

Learn more about C-Change

1 Take out your mortgage with Ecology

2 Build your new home or transform an existing property

3 Confirm your revised energy rating and we'll calculate your discounted rate

Mortgage calculator

Work out how much you could borrow and compare monthly payments for our Self-build mortgage. You’ll also be able to see how much you could save if you’re eligible for our C-Change discount.

Our mortgage calculator is for illustrative purposes only and is designed to give an indication of the amount that we may be able to lend. The actual amount that we may be able to lend will depend on a full assessment of affordability, the property value and the size of your deposit.

Find out how much you could borrow

Your home may be repossessed if you do not keep up repayments on your mortgage

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C-Change FAQs

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 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.

Mortgage FAQs

Self-build FAQs

Do I need to provide planning permission for my self-build?

Yes. We need at least outline planning permission to start the application process and detailed planning permission before the mortgage is released.

What information do I need to progress a mortgage application?

You’ll need to have a specific plot and build in mind which needs to be supported by detailed plans, including a breakdown of material and labour costs and an indication of the energy standard you are building to.  We’re currently focusing on self-build properties that are aiming for Passivhaus or EPC B (SAP rating 88+) or above.

What deposit do I need for my self-build?

You need a 20% minimum deposit to buy the land and a further 15% – 20% of total build costs to start your build.

Do I still need a deposit for my self-build if I 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 to start the build, 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.

Do you lend on buying the plot/land only?

We don’t just lend on a plot/land purchase. Any project we support needs to show planning details of the proposed build with an indication of the energy standard you are building to, and how the build costs are expected to be funded with savings and mortgage finance.

How long do I have to complete the build?

Subject to planning constraints, we allow a maximum of 2 years for you to complete the self-build, although we encourage you to complete earlier to benefit from our C-Change sustainable homes 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 self-build?

Yes, although the Ecology self-build mortgage does 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 I have interest-only during the build 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 Ecology require a particular build warranty on completion of my self-build?

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.

Does the self-build property have to be my main residence?

Yes, although we do offer a buy to let mortgage. Please bear in mind that the property can’t be a second or holiday home or classed as mobile planning.

Do you do mortgages for property renovations or conversions that are eco-friendly?

Yes, we do mortgages for other types of projects. Find details on what we lend on for conversions and renovations.