Ecology Building Society has launched a renovation mortgage aimed at homeowners looking to make their properties more environmentally friendly.
The product is available up to 80% loan-to-value (LTV) at a variable rate of 5.29%.
Borrowers can reduce the rate by up to 1.50% for the life of the mortgage if they improve their home’s energy efficiency, through Ecology’s C-Change discount.
This could bring the rate down to 3.79%.
Daniel Capstick, senior mortgages product and proposition manager at Ecology, 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.”
Capstick added: “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.”
Ecology is also offering a renovation mortgage up to 90% LTV at a variable rate of 6.04%, with the same potential C-Change discount.
This product allows for staged payments during renovation.
Neither product has an application fee and both offer a cashback incentive for installing heat pumps, with £500 available for an air source heat pump and £1,000 for a ground source heat pump.
