New green mortgage introduced by Ecology

April 16, 2025 by Heidi

Mortgage Advisors

Mortgage lender Ecology has announced that it is introducing a new green product to its range, which will come with a discount for anyone buying or remortgaging an energy-efficient property.

The Sustainable Building Society is calling this new product the Eco Home Mortgage and it is a variable rate loan. It will only be available to borrowers under very strict conditions. The property that they are seeking to buy or remortgage must have at least a B* Energy Performance Certificate (EPC) rating. The highest loan to value (LTV) that is on offer for the product is 80% and there is no fee for applications.

At the moment, the interest rate for it has been set at 5.15% and this factors in a discount of 1.14%. That discount will apply for the whole duration of the loan, and it is known as the ‘eco-home’ discount.

In addition to the properties mentioned above, there are certain other kinds that will also be eligible for one of these loans. They include ones constructed with materials that have low embodied carbon and ones constructed using alternative building methods. That means things like frame structures made out of timber.

Talking to Financial Reporter, Dan Capstick from Ecology said:

“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.”

The arrival of more green products on the market is something that anyone with the CeMAP qualification will welcome.