"We hope that the updates to the C-Change discounts will encourage our borrowers to build even more energy efficient homes, which is critical in the fight against climate change."
The lender has made the changes to its range of green mortgages for self and custom-build borrowers.
Ecology’s self-build mortgage starts with an initial rate of 4.65% while the construction works are underway. This rate changes to 4.99% from 1st August. On completion of the works, borrowers are eligible for a C-Change discount of up to 1.50% based on the SAP rating in the EPC or if the property is accredited to the exemplary AECB Building Standard or Passivhaus standard.
For example, if the finished build is accredited to the Passivhaus standard a discount of 1.50% applies giving a variable rate of 3.15% for the remaining term of the mortgage (3.49% from 1st August). An application fee of £799 is payable. Applicants can borrow up to 80% of the property’s value in stages to support the progress of the build.
The changes also include the addition, for the first time, of dedicated discounts for homes built to a SAP rating from 100 to 109 and SAP ratings of more than 110, of 1.00% and 1.25% respectively, which Ecology is calling A+ and A++. This reflects the environmental performance of homes built to a standard that generates more energy than they consume.
Ecology offers flexible staged payments for self and custom-build mortgages based on the needs of the borrower. It will also consider a range of construction techniques including those using non-standard materials and modern methods of construction.
In addition, the Society offers a renovation mortgage where a property is being purchased for renovation or retrofit. It will consider lending on homes in any condition, as long as the works required improve the energy efficiency of the property. On completion of the renovation the Society’s retrofit discounts apply.
Daniel Capstick, Ecology’s mortgage manager, commented: “Now more than ever it’s important that lenders play an active role in incentivising green building and helping to reduce energy bills. We’ve been leading the way on sustainable mortgages for over 40 years, and we hope that the updates to the C-Change discounts will encourage our borrowers to build even more energy efficient homes, which is critical in the fight against climate change.”
