| Energy Standard | Ratings | SVR (Standard Variable Rate) | Discount % | Variable Mortgage Rate |
|---|---|---|---|---|
| Passivhaus | Passivhaus | 4.65% | 1.25% | 3.40%. The overall cost for comparison is 4.80% APRC |
| Energy Performance Certificate (EPC) | A or above | 4.65% | 0.75% | 3.90%. The overall cost for comparison is 4.80% APRC |
| Energy Performance Certificate (EPC) | B (SAP rating 85+) | 4.65% | 0.50% | 4.15%. The overall cost for comparison is 4.80% APRC |
| Code for Sustainable Homes (CSH) | Code Level 4 | 4.65% | 0.75% | 3.90%. The overall cost for comparison is 4.80% APRC |
| Code for Sustainable Homes (CSH) | Code Level 5 | 4.65% | 1.00% | 3.65%. The overall cost for comparison is 4.80% APRC |
| Code for Sustainable Homes (CSH) | Code Level 6 | 4.65% | 1.25% | 3.40%. The overall cost for comparison is 4.80% APRC |
| Association for Environment Conscious Building (AECB) | Silver | 4.65% | 0.75% | 3.90%. The overall cost for comparison is 4.80% APRC |
| Association for Environment Conscious Building (AECB) | Gold | 4.65% | 1.25% | 3.40%. The overall cost for comparison is 4.80% APRC |
Archives: FAQ - Mortgages
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.
How to apply
Community-led housing FAQs
Do we need to provide planning permission for a new build development?
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 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 our mortgage?
You need a minimum deposit of 20% 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, although we encourage you to complete earlier to benefit from our C-Change sustainable homes or C-change retrofit discount which is applied to the 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?
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 until rental or sales income can service capital repayments.
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?
No, we can consider lending to new groups in support of their first project, subject to receipt of a robust business plan.
Do we need to have a minimum number of properties or members?
We can consider projects with a single property. If you are a housing co-operative, we require that you have a minimum of four independent resident members, and that a minimum of 50% of members are in paid employment.
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.
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.
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.
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.
