Ecology Building Society raises green mortgage criteria

Ecology Building Society has announced a raise to the entry criteria for its range of green mortgages for self and custom-build products.

The society indicated that its move intends to accelerate the construction of energy efficient homes to help meet the UK’s net-zero ambitions.

Ecology has increased the minimum energy rating level – or Standard Assessment Procedure (SAP) rating – from 85 to 88, for self-build applicants to achieve when their build is completed.

Building Regulations require that a SAP calculation and a predicted ‘on construction’ Energy Performance Certificate (EPC) is submitted for new dwellings prior to building work commencing.

Ecology’s self-build mortgage starts with an initial standard variable rate of 4.15% while the construction works are underway. On completion of the building works, borrowers are eligible for a discount of up to 1.25% based on the EPC.

The society’s decision to increase the entry level for self and custom-build comes at a time when the government has recently stated that new homes must reduce carbon emissions by 75% by 2025.

Ecology mortgage manager, Daniel Capstick, stated: “Now more than ever it’s important that lenders play an active role in a sustainable recovery, helping to build back better.

“We’ve been leading the way on green mortgages for 40 years and we hope that the changes to our lending criteria will result in our borrowers building more energy efficient homes, which is critical in the fight against climate change.”

    Share Story:

Recent Stories


Will open banking revolutionise the lending industry
Adam Cadle speaks to Jack Tenwick, Head of UK Sales, Yolt Technology Services, about how to get the most out of your lending business and the role of open banking

Mortgage Insider Series 2 Episode 7: Diversity: Pride Month
Listen to our latest episode where we discuss the importance of diversity and Pride month.



Why is it good for business to have a diverse and inclusive workforce? Nancy Kelley, CEO of Stonewall, and Hannah Bernard, Head of Business Banking at Barclays, tell us what it means to be allies to the LGBT+ community and how to challenge assumptions that create communication barriers.



Make Money Work For You.

FREE E-NEWS SIGN UP

Subscribe to our newsletter to receive breaking news and other industry announcements by email.

  Please tick here to confirm you are happy to receive third party promotions from carefully selected partners.