Ecology self-build mortgage
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Our self-build mortgages are available to a wide range of self-builders. Whether it’s a competent DIY approach, custom build, self-managed right through to fully managed by a main contractor, we will consider lending.
At Ecology, we’re not put off by the construction type; we’ll support many types of construction techniques including those using non-standard materials and modern methods of construction. If we can see your self-build will be energy efficient using sustainable and where possible, locally sourced materials, we’ll consider lending.
We’ll lend on:
- Timber frame and timber clad
- Non-traditional such as straw bale, rammed earth, cob
- Modern Methods of construction built off-site
- Structurally insulated panels
- Insulated concrete forms
- Builds that contain renewables such as photovoltaics, solar thermal, heat pumps, etc.
Our mortgages are available in the UK (England, Scotland, Wales and Northern Ireland).
How the mortgage works
We’ll lend to support the purchase of the plot and the costs of your self-build project.
Outline planning permission needs to be in place to apply for the mortgage and detailed planning needs to be granted before any mortgage funds are released.
Normally, we’ll release up to 80% of the plot purchase price or value of the property if you already own the land and subsequently, the money required to cover the build costs. As you continue with your build, staged payments of up to 80% of your increased property value as the build progresses 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 20% deposit for your plot and further funds to commence the early stages of the build. We normally recommend 20% of your total build budget as a good starting point to begin your self-build project.
Once your self-build is complete and you achieve the appropriate energy certificate, we can lower your interest rate through our C-Change discounts.
Key product details
Self-build mortgage
- 5.99% variable interest rate
- 6.2% APRC (overall cost for comparison)
- £799 application fee
- 80% maximum loan-to-value
- Energy-efficient self-build rewarded through our C-Change discounts from 0.50% to 1.50%
- Ability to overpay by up to 10% per annum over the first 2 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)
- All self-build projects must show they will achieve a minimum SAP rating of 88
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