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: