The mutual has partnered with four modular construction manufacturers so far and more suppliers are set to sign up. These include NHouse, R. House, Agile Homes and HebHomes. Mortgages will only be available through certain suppliers.
This will enable finance for properties which are built offsite for different types of builders.
The two choices will include an arrears payment option priced at 5.54 per cent, lower than the mutual's self-build mortgage rate of 5.79 per cent. And also, an advanced payment option with a rate of 6.04 per cent, which will support those who require funds upfront. This product will give borrowers advance payments up to 80 per cent of the build contract costs in the construction stages.
Borrowing up to 65 per cent of the property's value is available on an interest-only, or part interest-only part repayment basis.
The products have a £995 application fee and can be paired with the mutual's cashback option of £500 for homeowners who install an air source heat pump and £1,000 for those who fit a ground source heat pump.
When works are completed, borrowers will be eligible for one of Ecology Building Society's C-Change discounts which aim to incentivise borrowers to build their homes to a better energy efficiency rating in reward for savings on energy and borrowing costs.
This can be a discount of between 0.25 per cent to 1.5 per cent off the mutual's variable rate.
Ecology: 'Incentivising green building'
Gareth Griffiths (pictured), chief executive of Ecology Building Society, said: "Decarbonising our homes is key to meeting our net-zero ambitions. Now, more than ever, it's important that lenders play an active role in incentivising green building and helping to reduce energy bills.
"We've been leading the way on sustainable mortgages for over 40 years, and we're really pleased to be working in partnership with off-site manufacturers, who have a track record of delivering sustainable homes. We hope that our new mortgages will help scale-up modern methods of construction to deliver more homes built to higher energy-efficiency standards."
He added: "The introduction of the 'advanced payment' mortgage option is an exciting first for Ecology, making energy efficient off-site build homes more accessible for those borrowers who may require up-front funding.
"Our innovative approach, to secure our lending, in advance, on the modular panels while they are in the factory, has the potential to be a game-changer, helping to realise the environmental benefits of off-site construction, which will be critical in the fight against climate change."
Source: https://www.mortgagesolutions.co.uk/
