Ecology Building Society has released a mortgage for homeowners and buyers who want to make their property more energy efficient through renovation.
The product is available up to 80% loan to value (LTV) at a variable rate of 5.29%.
A discount of up to 1.5% can be accessed by borrowers who make their home more efficient through the mutual’s C-Change initiative.
Daniel Capstick, senior mortgages product and proposition manager at Ecology Building Society, 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.”
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He 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.”
The mutual already offers a renovation mortgage up to 90% LTV with a variable rate of 6.04% and a potential discount of up to 1.5% for the life of the mortgage.
This product allows for staged payments during renovation.
Both products have no fee and £500 cashback for installing an air source heat pump and £1,000 for a ground source heat pump.
Last month, the firm joined Primis Mortgage Network’s lender panel.