Ecology Building Society has expanded its range of C-Change mortgage discounts including increasing the maximum discount to 1.50%.

The lender has made the changes to its range of green mortgages for self- and custom-build in a drive to encourage and accelerate the construction of the most energy efficient homes to help meet the UK’s net-zero ambitions.

The changes are being introduced against the backdrop of increasing mortgage rates and the wider cost of living crisis.

Ecology’s self-build mortgage starts with an initial rate of 4.65% while the construction works are underway. This rate changes to 4.99% from 1 August. On completion of the works borrowers are eligible for a C-Change discount of up to 1.50% based on the SAP rating in the EPC (Energy Performance Certificate) or if the property is accredited to the exemplary AECB Building Standard or Passivhaus standard.

The changes also include the addition, for the first time, of dedicated discounts for homes built to a SAP rating from 100 to 109 and SAP ratings of more than 110, of 1.00% and 1.25% respectively, which Ecology is calling A+ and A++. This reflects the environmental performance of homes built to a standard that generates more energy than they consume.

This Sustainable Homes version of Ecology’s range of C-Change discounts is designed to incentivise and encourage borrowers to build their home to a better energy efficiency rating leading to a long-term saving in both energy and borrowing costs.

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.

Daniel Capstick, Ecology’s mortgage manager, said: “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 hope that the updates to the C-Change discounts will encourage our borrowers to build even more energy efficient homes, which is critical in the fight against climate change.”

Jon Bootland, CEO of the Passivhaus Trust, added: “We’re delighted that Ecology Building Society has increased its C-Change mortgage discount for Passivhaus even further. Ecology has been leading the way in green mortgages for many years; they recognise Passivhaus as the leading standard for energy efficiency and occupant comfort by awarding it their maximum discount.

“Green financing can impactfully incentivise efficiency measures and higher quality buildings. We look forward to seeing more homeowners taking advantage of both Passivhaus benefits and Ecology’s mortgage discounts in the coming years.”