Ecology Building Society has launched a renovation mortgage for owners and buyers who want to cut their home’s carbon footprint.

The new product is available up to 80% loan-to-value (LTV) at a variable rate of 5.29%.

The society says the mortgage rate can by lowered by as much as 1.50% as a reward for making homes more energy efficient.

Similar to other products by the mutual, the new renovation deal includes its innovative C-Change discount, which could cut the borrower’s rate to 3.79% for the life of the mortgage.

Ecology Building Society senior mortgages product and proposition manager Daniel Capstick says: “C-Change is both an incentive to make the changes as well as recognition for how they’ve improved their home’s energy efficiency.”

“At a time when fuel costs remain high and volatile, making green home improvements to your home should also save money on your bills.”

The society also offers a renovation mortgage up to 90% LTV with a variable rate of 6.04%, also with the benefit of a potential C-Change discount of up to 1.50% for the life of the mortgage. This product allows for staged payments during the renovation work.

Both this and the new Ecology renovation mortgage have no product fee and come with the added incentive of cashback for installing a heat pump – £500 for an air source heat pump and £1,000 for a ground source heat pump.

Capstick adds: “To complement existing products, we wanted to add to our mortgage range to be able to support more borrowers who are planning green improvements to existing homes they already own or plan to buy which can benefit from ‘lighter touch’ renovations.”

“They might want to overhaul their heating system and install a heat pump, add or upgrade insulation, or fit solar panels and a battery.”