The mutual’s affordable local homes mortgage is designed for buyers of affordable properties through the discounted market sale scheme.

The fee-free product has a variable rate of 5.54% and is available up to 95% LTV.

Discounted Market Sale Homes are properties discounted in perpetuity to act as a stepping stone for first time buyers. They are only available to local residents, which helps communities to thrive and grow by ensuring people can stay in their local areas.

Ecology’s affordable local homes mortgage has an extended maximum term up to 35 years, no application fee or early repayment charges, as well as unlimited overpayment options, to make it as flexible as possible.

In addition, the society has cut its stress test rate to 1.75% as part of an ongoing focus on how it can help more first time buyers and offer solutions to affordability challenges.

Ecology Building Society senior mortgages product and proposition manager Daniel Capstick says: “Most lenders are unwilling to offer home loans on properties with residence restrictions so this lack of mortgage choice risks locking first time buyers out of housing schemes created to help them.”

“That’s particularly true of schemes aimed at enabling purchasers to stay in their local area where they have ties to family, friends and work.”

“At Ecology, we believe being able to preserve these local links is an important part of building and maintaining sustainable communities, so we wanted to create a new product with a competitive rate to make it easier for more people to stay local as they step onto the housing ladder.

“Our Affordable Local Homes mortgage is designed specifically to support buyers of Discounted Market Sale Homes, whether that’s through Government schemes like First Homes, local authority projects subject to section 106 agreements, or community-led schemes by groups such as Community Land Trusts.”