We’ve launched our new Eco Home Mortgage

We’ve launched our new Eco Home Mortgage, offering a full-term discount for borrowers wanting to purchase or remortgage an energy-efficient home.

Our new variable rate product has no application fee and is available with a maximum 80% loan-to-value for properties with an Energy Performance Certificate (EPC) rating of B* or above.

The discounted variable interest rate at launch is 5.15%, which includes a 1.14% full-term ‘eco home’ discount.

We’ve launched our Eco Home product after identifying strong demand for more sustainable borrowing options from ethical providers.

Dan Capstick, Ecology’s Mortgage Product Manager, said:

“Industry searches for ‘green mortgages’ spiked earlier this year, reflecting a growing trend in finding out more about living more sustainably and choosing energy-efficient homes.

“We expect our Eco Home Mortgage to be of great interest to homeowners already living in an energy-efficient property, who can now remortgage to Ecology, and to property purchasers of homes that meet our minimum EPC criteria.

“In both cases, customers will benefit from our full-term discount and from placing their mortgage with an ethical financial services provider that makes a positive impact on people, planet and communities.

“As a building society created to offer mortgages for people who care about living more sustainably and reducing their environmental impact, greater consumer awareness about green finance is good news – and we’re pleased to be able to offer a solution.”

Ecology’s Eco Home Mortgage is also available to homes built using non-standard methods of construction, including timber frame structures and those that use materials with low embodied carbon. The Society was the first UK provider to offer dedicated mortgages for off-site construction.

A higher loan-to-value version of the Eco Home Mortgage is planned for release in the coming months, in addition to future enhancements to Ecology’s mortgage offer to further meet the demands of a wider range of homebuyers looking for sustainable lending.

Key product features

• 5.15% variable rate, with a full-term discount for the life of the mortgage
• Available to homes with a minimum EPC (Energy Performance Certificate) rate of B (*minimum rating of 85 or above)
• Available for purchase or remortgage up to 80% loan-to-value
• No application fee
• Minimum term 5 years; maximum term 30 years
• Maximum loan size – £600,000 (£750,000 in London and South East)
• Homes built after 2015 require an acceptable build warranty
• Tapered Early Repayment Charges in first three years of term (3%/2%/1%)
• Overpayments of up to 10% per annum permitted without penalty in first three years, then unlimited
• Full Terms and Conditions apply to the above.

Visit the Eco Home Mortgage product page to find out more.

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