Archives: FAQ - Mortgages

For new build projects: C-Change sustainable homes	Ratings	Variable Rate*	Discount %	Variable Mortgage Rate
Passivhaus	Passivhaus	4.65%-5.50%	1.25%	3.40%-4.25%
Energy Performance Certificate (EPC)	A or above	4.65%-5.50%	0.75%	3.90%-4.75%
Energy Performance Certificate (EPC)	B rated	4.65%-5.50%	0.50%	4.15%-5.00%
Code for Sustainable Homes (CSH)	Code Level 4	4.65%-5.50%	0.75%	3.90%-4.75%
Code for Sustainable Homes (CSH)	Code Level 5	4.65%-5.50%	1.00%	3.65%-4.50%
Code for Sustainable Homes (CSH)	Code Level 6	4.65%-5.50%	1.25%	3.40%-4.25%
Association for Environment Conscious Building (AECB)	Silver	4.65%-5.50%	0.75%	3.90%-4.75%
Association for Environment Conscious Building (AECB)	Gold	4.65%-5.50%	1.25%	3.40%-4.25%

For renovations: C-Change retrofit	Ratings	Variable Rate*	Discount %	Variable Mortgage Rate
Energy Performance Certification (EPC)	EPC rating improvement	4.65%-5.50%	0.25% for each improvement in the EPC rating	3.15% -5.25%

For energy installations: C-Change energy improvement discount	Ratings	Variable Rate*	Discount %	Variable Mortgage Rate
For specific energy improvement works	Evidenced with invoices and our C-Change energy improvement checklist	4.65%-5.50%	A 1.00% discount is applied on funds borrowed specifically for qualifying energy improvement works (see C-Change energy improvement checklist)	3.65% - 4.50% on funds borrowed specifically for qualifying energy improvement works 4.65%-5.50% for funds borrowed that are not related to qualifying energy improvement works to the property

*The Variable Rate applicable to your project is dependent on the type of organisation you are and whether you have been established for more than three years. For all Housing Associations, our current Variable Rate is 4.65%, for other new and emerging community-led housing groups with less than three years’ track record, our current  Variable Rate is 5.50% and for established other community-led housing groups our current Variable Rate is 4.85%. 

For us to apply the applicable C-Change sustainable homes, C-Change retrofit or C-Change energy improvements discount, once your build, renovation or conversion is complete you need to provide an Energy Performance Certificate and an Architect’s or Building Control sign off of works as applicable.

The discount is only applied to our Variable Rate when we receive evidence that the work has been completed and the Energy Standard rating required has been achieved.

How we work out your Variable Mortgage Rate:
Our Variable Rate (relevant for your organisation) minus C-Change discount = Variable Mortgage Rate

Do we need to provide planning permission for a new build development?

Yes, we need detailed planning permission prior to making an application.

What information do we need to progress a mortgage application?

You’ll need to have a specific project 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 or renovating to. We will also ask for recent financial accounts and bank statements where appropriate, along with financial projections to show how your project will service your mortgage repayments and other ongoing financial commitments.

What deposit do we need for my mortgage?

You need a minimum deposit of 30% of the purchase price or value of the property(ies) being mortgaged, whichever is the lower.

Do we still need a deposit if we 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 or property, 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.

How much will our mortgage cost a month?

As soon as we know that we can help, we’ll provide you with an indicative illustration, showing how much your monthly repayment will be for the amount you want to borrow, over the term you require

How long do we have to complete the build or renovation?

Subject to planning constraints, we allow a maximum of 2 years for you to complete the build or renovation.

Do you offer stage payments?

Yes, although we do 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 we have interest-only during the build or renovation phase?

Yes, we can offer an interest-only period during the construction or renovation phase subject to an acceptable repayment vehicle.

Does Ecology require a particular build warranty on completion of my project?

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.

Do we need to have been established for a minimum period before you will lend to us?

Yes, we need to see the last three years’ accounts for your business, or the business you are purchasing.

Our fees and charges:

• A non-refundable mortgage application fee of 0.25% of the sum applied for is payable on submitting a formal application
• An offer acceptance fee of 0.50% of the sum approved is payable on acceptance of a formal mortgage offer from us
• We will agree a valuation fee with you using a local qualified chartered surveyor. Payment of the fee agreed will be required from you in advance of the Society formally instructing the surveyor to undertake a valuation report
• An early repayment charge may be payable if you repay all or part of your mortgage within the first two years.

Our service, 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 current Commercial rates and charges leaflet.

 

Once your build, renovation or conversion is complete you will need to provide an Energy Performance Certificate and an architect or building control sign off of works if applicable.

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 20% 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 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.

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 service, 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 current Residential rates and charges leaflet.