The product has a variable rate of 5.15% with a 1.14% discount on the rate for the full term of the mortgage.
It is available for purchase and remortgage up to 80% loan to value (LTV), has no application fee and is eligible for lending against properties with an Energy Performance Certificate (EPC) of B or higher.
Ecology Building Society will lend for a minimum of five years up to 30 years, on loans up to £600,000 or £750,000 in London and the South East.
Homes built after 2015 will need an acceptable build warranty.
Dan Capstick, mortgage product manager at Ecology Building Society, said: “Industry searches for ‘green mortgages’ spiked earlier this year, reflecting a growing trend in finding out more about living more sustainably and choosing energy-efficient homes.
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“We expect our Eco Home Mortgage to be of great interest to homeowners already living in an energy-efficient property, who can now remortgage to Ecology, and to property purchasers of homes that meet our minimum EPC criteria.”
He added: “In both cases, customers will benefit from our full-term discount and from placing their mortgage with an ethical financial services provider that makes a positive impact on people, planet and communities.
“As a building society created to offer mortgages for people who care about living more sustainably and reducing their environmental impact, greater consumer awareness about green finance is good news – and we’re pleased to be able to offer a solution.”
The Eco Home Mortgage is also available to homes built using non-standard methods of construction, including timber frame structures and those that use materials with low embodied carbon.
The mutual is planning to release a higher-LTV version of the product in the coming months, as well as future enhancements to make it more accessible to a wider range of borrowers.
