Our Renovation Mortgage is designed for people who wish to transform existing buildings into more sustainable, energy-efficient spaces. Whether you’re restoring a rural cottage, retrofitting a Victorian terrace, or breathing new life into an old residential building, your project could qualify.

We consider a wide range of property types, including:

• Traditional homes – including stone cottages, brick terraces, and timber-framed houses in need of modernisation, and an upgrade to their energy efficiency
• Properties built with non-standard construction – unconventional builds that are often hard to finance elsewhere
• Derelict or ‘unmortgageable’ properties – we’ll consider projects others may not, provided there’s a clear plan for improvement and renovation.

To qualify, your renovation should aim to improve the property’s environmental performance. We’ll look for:

• Works you plan to do to improve the energy efficiency of your property
• Consideration of renewable energy systems e.g. solar panels, heat pumps
• An improvement of at least one grade on your property’s Energy Performance Certificate (EPC) rating

Our mortgages are available in the UK (England, Scotland, Wales and Northern Ireland) and available for purchases or remortgages.

How the mortgage works

We’ll lend money to help you buy and renovate the property.

We’ll release up to 80% or 90% of the purchase price or value of the property and subsequently, the money required for the renovation costs. As you continue with your renovation, staged payments of up to either 80% or 90% of your increased property value will be released – this will help you keep tabs on your budget and planning.

This type of mortgage may be suitable if you are able to make a cash deposit on your property and fund the early stages of the build.  We normally recommend 15%  to 20% of your total budget as a good starting point to begin your renovation.

Once your renovation is complete and the energy efficiency of your property is improved, you can lower your interest rate through our C-Change discounts.

Key product details

Renovation mortgage 80% loan-to-value

• 5.29% variable interest rate
• 5.5% APRC (overall cost for comparison)
• £0 application fee
• 80% maximum loan-to-value
• Energy efficient renovations rewarded through our C-Change discounts from 0.25% to 1.50%
• Ability to overpay by up to 10% per annum over the first three years. Any amount above 10% will incur an early repayment charge
• Borrow up to 80% of the property’s value on a repayment basis, or up to 65% interest-only (or part repayment and part interest-only)