In this brief guide, we are going to discuss what an ecology mortgage is, how you can get one and any considerations you should be aware of.
What is an ecology mortgage?
An ecology mortgage is a mortgage which finances the building or renovation of an eco property which has a positive social and environmental impact.
Ecology mortgages are primarily provided by the Ecology building society. If you are planning to do any Eco renovations or builds then you may be best placed to go to them.
You can find an overview of all the up to date mortgage products offered by the Ecology building society on their website.
In this blog, we will consider Ecology Building society mortgage reviews and how to analyse the publicly available information about Ecology Building society mortgages and be able to review them so you can make up your mind about if you want to apply for a mortgage with Ecology Building society.
Ecology Building society is a UK bank which offers mortgages in the UK.
What kind of mortgage does Ecology Building society offer
In our Ecology Building society mortgage review, we considered the various types of mortgages which Ecology Building society offered.
Ecology Building society Fixed-rate mortgages:
With these mortgages, the rates are fixed for a period of 2, 3 or 5 years and provides you certainty over your Ecology Building society Mortgages mortgage for that time frame.
Ecology Building society Variable rate mortgages:
You can access a host of variable mortgages through Ecology Building society Mortgages mortgages and this mortgages will have a variable rate which can be increased or decreased at any time by Ecology Building society Mortgages mortgages. You will be informed before a rate increase.
Ecology Building society Tracker mortgages:
You can access a host of tracker mortgages from Ecology Building society Mortgages mortgages. These mortgages will usually track the bank of England’s rate and will move in line with it, although it may not be the exact rate but rather a rate which will increase by the same point or decrease by the same point as the bank of England rate.
Ecology Building society Remortgages:
You can access a host of remortgages on any of Ecology Building society Mortgages mortgages products. To get a remortgage you may need to have sufficient equity in your home and meet the mortgage affordability requirements.
Do Ecology Building society mortgages allow you to make overpayments?
Ecology Building society Mortgages mortgages may also allow you to make overpayments on your mortgage but there may be a fee for doing so and a limit on how much you can overpay your mortgage each year. You should check your key facts illustration for this or ask your mortgage adviser.
Does Ecology Building society offer the best mortgage deals?
Whilst conducting our Ecology Building society mortgage review we looked to see what mortgage provider offered the best mortgage deals but during our analysis, we discovered that the mortgage rates which most consumers ended up getting were based primarily based on their own mortgage affordability and not necessarily the rates offered. This is because every borrower may have different circumstances.
How can you contact the Ecology Building society mortgage bank?
You can contact Ecology Building society directly through their website here.
Can I borrow more on my Ecology Building society mortgage?
Yes, you may be able to borrow more from your Ecology Building society mortgage if you meet the mortgage affordability requirements set out by Ecology Building society at the time of your request to borrow more from your Ecology Building society mortgage.
A few things you may want to do before you apply for a further advance:
Check your credit score
If your credit score is down then focus on credit building activities such as:
- Registering on the electoral roll
- Getting a credit builder card
- Getting a secured credit card
- Getting a credit builder loan
- Avoid missing credit repayments
- Avoid making late payments
How do Ecology Building society mortgages treat first-time buyers?
If you are a first-time buyer then Ecology Building society mortgages welcome you and you may be able to find some mortgage products on offer which may suit you.
For a mortgage as a first-time buyer, you will usually need at least a mortgage deposit of at least 5% and in many cases you may be able to use a host of government schemes which help you increase the amount of mortgage deposit you have or reduce the total cost of the property purchase.
Some of these first-time buyer or home mover government schemes include:
- Lifetime ISA– gives you a government bonus of £1,000 if you save a maximum £4,000 a year.
- Help to buy ISA– gives a maximum bonus us £3,000 if you save the maximum allowed of £12,000. Before you get either you should consider which is better. Lifetime ISA vs Help to buy ISA.
- Help to buy equity loan– gives you up to 40% as a 5-year interest-free equity loan. You begin to pay interest at 1.75 % after the fifth year and 1% plus RPI for every year thereafter.
- Shared ownership– You can buy between 25% to 75% of the property initially with a shared ownership mortgage and then buy more using a staircasing mortgage.
- Armed forces help to buy– similar to the help to buy equity loan but specific for the armed forces personnel giving them an increased chance of acceptance.
- Rent to buy– This is the right to buy scheme on which this guide is currently discussing. A different marketing name is just used. Watch out for this when shopping to avoid missing out on eligible properties due to confusion.
- Right to buy– allows you to buy your home at a discount price.
- Preserved right to buy– same as above.
- Right to acquire– similar to the above.
Depending on where you live, you may also be able to take advantage of home buying schemes provided by your local council. Example: In Norwich, the local councils provide the Norwich home options scheme.
Is Ecology Building society a good mortgage lender?
As with all mortgage lenders, you will have to make up your own mind on if Ecology Building society is a good mortgage lender or not.
Throughout our Ecology Building society mortgage review, we didn’t find any reason to term Ecology Building society mortgages as a bad mortgage lender.
You should also be aware that all residential mortgage lenders in the UK are regulated by the FCA and so they have to meet certain minimum standards. Mortgage lenders and all FCA regulated entities have to “treat customers fairly”.
If a mortgage lender doesn’t treat you properly then you may be able to claim compensation from the financial services compensation scheme.
What is a Ecology Building society mortgage in principle?
A Ecology Building society mortgage in principle is simply a letter which indicates how much Ecology Building society mortgages is willing to lend to you.
The mortgage in principle will usually be valid for 90 days. If you need further time then you may be able to get an extension on your mortgage in principle. Some mortgage lenders may require you to make a new mortgage in principle application.
If you are buying a property off-plan e.g a new build property then you may need a mortgage in principle which lasts for several months and in some cases up to 12 months.
How long does Ecology Building society give to complete a mortgage?
When buying a property most mortgage lenders will give you 6 months within which you must complete on the mortgage. This is the same with Ecology Building society mortgages. If you need more time you may be able to apply for an extension but you may be charged some fees.
You may also be required to make a new mortgage application if the mortgage lender (as most mortgage lenders) has a maximum time in which they will allow a mortgage offer to be valid.
What documents do I need for a Ecology Building society mortgage?
During our Ecology Building society mortgage review, we tried to come up with a sample list of documents you may be expected to have before applying for a mortgage in principle with Ecology Building society.
Having these documents ready before you apply for your mortgage in principle will ensure your mortgage application is handled swiftly and you can get a mortgage offer in record time once you have found a property you want to buy.
The documents you may need include:
Your Passport Or driver’s license for identification
3 months worth of bank statements
3 months worth of payslips
An accountant’s certificate for mortgage
Your P60 tax return
Your SA302 tax calculation form(if you are self-employed)
Your company accounts or self-employed accounts if you are self-employed
Your contracts if you are a contractor
How long does a Ecology Building society mortgage take?
A Ecology Building society mortgage application may take as much as 4 weeks to complete but this all depends on your own individual circumstances. If you have a more complex situation then your Ecology Building society mortgage application could possibly take longer.
If you want to reduce the amount of time your mortgage application may take then you should get your mortgage documents ready before you start the mortgage process and look to engage the key personnel you may need as early as possible. This could include a mortgage broker, a conveyancer and a real estate agent.
How long does a Ecology Building society remortgage take?
When conducting our Ecology Building society mortgage review we considered how long the remortgage process could take with Ecology Building society. The remortgage process could take as long as 4 weeks but this is all dependent on your personal circumstances. If you are getting a remortgage on a non-standard construction property then you may find that it takes longer to get a remortgage.
This could also be the case if you have bad credit. You may need a specialist bad credit mortgage broker to assist you in finding a mortgage lender willing to offer you a remortgage.
If you are remortgaging from Ecology Building society to another mortgage lender then you will need a redemption statement.
This is a document which your mortgage lender gives you to let you know how much you need to pay to settle your mortgage.
You may want to consider a few factors before requesting a mortgage redemption statement. E.g when will the last interest charge be placed.
How much can you borrow from Ecology Building society?
The amount you may be able to borrow from Ecology Building society is completely dependent on your mortgage affordability but Ecology Building society may offer a mortgage multiple of up to 5.
Most mortgage lenders will offer mortgage multiples of around 3 or 3.5.
They may also have a maximum amount which they may borrow regardless of the mortgage multiple.
What happens after your fixed-rate Ecology Building society mortgage deal is over?
During our Ecology Building society mortgage review, we discovered that as with most mortgage lenders when your fixed-rate mortgage deal ends you will be moved over to the mortgage lenders standard variable rate deal. This is usually more expensive than the fixed-rate deal.
To avoid this you can remortgage at the end of your fixed-rate mortgage deal to a better mortgage than the standard variable rate deal you would have automatically been moved on to.
To ensure you are always on the best mortgage rate you can sign up to a mortgage management platform which searches the best mortgage rates on the market which you are eligible for and nudges you to switch to a better mortgage rate.
Ecology Building society mortgage deals
In our review, we considered the types of deals that Ecology Building society mortgages had but we didn’t feel it necessary to include them here as the mortgage deals or remortgage deals offered were subject to change at any time and the best way to see what mortgage or remortgage deals are currently available is to check with the respective mortgage lenders or your mortgage broker.
Can you get a Ecology Building society mortgage with Bad Credit?
In our Ecology Building society mortgage review, we considered if you could get a Ecology Building society mortgage with bad credit.
In reality, it is very hard to answer this question as it depends heavily on the type of bad credit you may have.
Ecology Building society mortgages will consider this and let you know if you are eligible for their mortgage products.
Bad credit could include:
A debt management plan
A home repossession
How do I get a mortgage statement from Ecology Building society?
You can manage your Ecology Building society mortgage online. When you sign up to Online Banking you’ll create a mortgage login which allows you to view information such as your current mortgage arrangements, interest rates, outstanding balance, and more.
Will I be able to manage my Ecology Building society mortgage online?
Yes. Once you’ve signed up for online banking, you’ll be able to see your mortgage information online. This includes:
next monthly payment
the previous year of payments (including any overpayment charges)
Will I need life cover or critical illness cover with a Ecology Building society mortgage?
Some mortgage products may require you to get a life cover or critical illness cover. You should ask your mortgage broker or mortgage adviser to determine if you will need to have life cover or critical illness cover along with your mortgage.
Most mortgage lenders will insist that you have house insurance before they complete on the mortgage. This means the property will be covered in case there is a fire, flood or incase any serious structural issues occur.
Using a mortgage broker for your mortgage
Whilst conducting our review we considered the potential effects of using a mortgage broker and we concluded that using a mortgage broker to search for what mortgages you may be eligible for maybe a better use of your resources than simply applying directly to a mortgage lender like Ecology Building society.
This is because mortgage brokers will have access to a host of mortgage products which make up a majority of the market from a long list of mortgage lenders. This in stark comparison to the few mortgage products each mortgage lender may offer.
Use a mortgage broker for your mortgage in principle
You may want to use an independent mortgage broker to help you get a mortgage on your new home.
Mortgage brokers are important as they can access mortgage products from across the whole of the market in some cases.
This could be over 11,000 mortgage products. This may have some advantages rather than going directly to a mortgage lender.
A mortgage broker will look to understand your financial circumstances and then provide recommendations on which mortgage products may be suitable for you based on your mortgage affordability.
After giving you these mortgage recommendations, most mortgage brokers will seek your consent to apply for a mortgage in principle.
This will allow you to shop for your home as more estate agents and sellers may take you seriously and it will also give you confidence that your mortgage is indeed a possibility before you make a full mortgage application.
Once you have found a home you want to buy and are satisfied with the mortgage offer for your mortgage then the mortgage broker will then look to get you a mortgage offer.
This will come with a key facts illustration document that details the features of your mortgage including how much you will pay per month.
It will also contain information on if there are any limits such as early repayment fees, or annual overpayment limits.
If you are happy with everything you can then go on to secure your mortgage with the help of a conveyancer.
Your conveyancer will manage the legal searches on the property to ensure there aren’t any issues with it.
They will oversee the sales agreement to ensure it is in your best interest, they will manage the transfer of mortgage funds, exchange contracts with the seller or their conveyancer, and set a completion date with the seller or their conveyancer.
This will then bring an end to the conveyancing process, at which point you will receive the keys to the house and move in.
How do I contact Ecology Building society?
You can contact the mortgage lender via their website here.
In this brief guide, we discussed what an ecology mortgage is, how you can get one and any considerations you should be aware of.
If you have any questions or comments please let us know.
If you need financial advice and you live in the UK then you could contact the Money Advice service over the phone or via chat for impartial advice.
You can also contact the debt charity “Step Change” if you are in debt and need help.