Hanley Economic launches 100% Rent to Own mortgage

Hanley Economic Building Society has expanded its residential mortgage range with the launch of a 100% LTV Rent to Own mortgage, specifically available for properties within local ST postcodes. 

The new product is designed to provide aspiring homeowners with a pathway to homeownership without the need for an initial deposit, offering support to first-time buyers seeking an accessible and affordable route onto the local property ladder. 

The Rent to Own mortgage offers a five-year fixed rate of 5.79%, and is available up to 100% LTV for eligible applicants meeting the Society’s Rent to Own criteria. Eligible applicants must be purchasing a property situated within an ST postcode - Stoke-on-Trent and its surrounding areas, encompassing 21 postcode districts within six post towns - and have an annual household income of over £25,000. Loans can be offered up to 133% of current rental payments with proof required of full rental payments over a 12-month period. 

There are no application or arrangement fees, though a valuation fee is applicable, subject to the property’s value. An early repayment charge of 3% applies during the fixed rate period, but borrowers can make overpayments of up to 10% per year without penalties. The product comes with a maximum loan size of £350,000.

Each case will be assessed on an individual basis by the in-house underwriting team, meaning no credit scoring.

David Lownds, head of products and marketing at Hanley Economic Building Society, commented: “This new 100% Rent to Own mortgage is designed to make homeownership a reality for those who may have struggled to save for a deposit. By eliminating the need for an upfront deposit, we are offering a practical solution for individuals, couples and families across the ST postcode region who are ready to take their first step onto the property ladder.

"As a member-owned mutual, our focus is on providing innovative, accessible and responsible lending solutions that fit the evolving needs of the modern borrower. We remain committed to designing products that genuinely make a difference, and this launch is a testament to that mission.”