Ecology Building Society launches cashback mortgage boost for heat pumps

The Silsden-based firm is introducing a new cashback option for mortgage applications on properties that include a heat pump in a drive to encourage the switch to low carbon heating technologies.

Daniel Capstick, Ecology’s mortgage manager, said: “Decarbonising how we heat 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 the cashback option makes it more affordable to install heat pumps, incentivising our borrowers to build or renovate to higher energy efficiency standards, which is critical in the fight against climate change.”

“It also helps raise awareness of the role of heat pumps as we transition towards a sustainable future.”

The decision follows the Government ruling that new homes must reduce carbon emissions by 75% by 2025.

Ecology’s cashback scheme will be available to borrowers for both Air Source Heat Pumps and Ground Source Heat Pumps.

Heat pumps are a renewable heating system which transfer heat from the air or ground to the home.

The systems use electricity to transfer the heat but operate at a higher efficiency rates than conventional fossil fuel boilers.

The cashback option is available on the society’s new residential mortgages for self and custom-build, renovations, conversions, and shared ownership as well as for further advances.

Borrowers will benefit from £500 cashback when they install an Air Source Heat Pump, and £1000 when a Ground Source Heat Pump is installed.

The cashback also works in tandem with Ecology’s C-Change discounts which rewards borrowers with a discount of up to 1.50% based on the final energy rating for new builds and renovation projects on completion.

The discount continues for the remaining term of the mortgage on completion of the build or renovation.