Ecology launches new mortgage for green home improvements

Ecology Building Society has introduced a new mortgage product to support homeowners wanting to make their properties more environmentally-friendly.

The ethical lender has launched a new renovation mortgage for owners and buyers who want to cut their home’s carbon footprint, available up to 80% LTV at a variable rate of 5.29%.

Borrowers can reduce this mortgage rate by up to 1.50% as a reward for making their home more energy efficient. In common with other Ecology mortgages, the new renovation deal includes the mutual’s C-Change discount, which could potentially cut their rate to 3.79% for the life of the mortgage.

Ecology also offers a renovation mortgage up to 90% LTV with a variable rate of 6.04%, also with the benefit of a potential C-Change discount of up to 1.50% for the life of the mortgage. This product allows for staged payments during the renovation work.

Both this and the new Ecology renovation mortgage have no product fee and come with the added incentive of cashback for installing a heat pump – £500 for an air source heat pump and £1,000 for a ground source heat pump.

Daniel Capstick, Ecology’s senior mortgage product and proposition manager, said: "We were founded to support people who wanted to live more sustainably so our C-Change discount is an important benefit for our borrowers.

“C-Change is both an incentive to make the changes as well as recognition for how they’ve improved their home’s energy efficiency.

“At a time when fuel costs remain high and volatile, making green home improvements to your home should also save money on your bills.

“We’re already known for our lending for more extensive renovation projects, including bringing derelict buildings back into use, with expertise acquired over more than four decades.

“To complement existing products, we wanted to add to our mortgage range to be able to support more borrowers who are planning green improvements to existing homes they already own or plan to buy which can benefit from ‘lighter touch’ renovations. They might want to overhaul their heating system and install a heat pump, add or upgrade insulation, or fit solar panels and a battery.”