Ecology launches new Eco Home mortgage product

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

The new variable rate product has no application fee and is available with a maximum 80% LTV 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.

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. 

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

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.”