Hanley Economic launches self-build product suite

Hanley Economic Building Society has launched a suite of self-build products, starting from 5.75%.

A two-year variable discount self-build/renovation part built mortgage has an initial pay rate of 5.75%, available on an arrears basis up to 60% LTV. This comes with an application fee of £299, an arrangement fee of £1,199 – which is deducted from the loan on completion - and a valuation fee which is subject to property value.

To qualify for this product type, the property should be at a minimum of wall plate level for self-build or full structural overhaul - including roofing and damp proof course - in respect of a renovation and be covered by an acceptable warranty provider.

The lender is offering further two-year variable discount self-build mortgages as part of the range.

A two-year variable discount self-build mortgage with an initial pay rate of 5.99% is available on an arrears basis up to 60% LTV. This comes with an application fee of £299, an arrangement fee of £700 – which is deducted from the loan on completion - and a valuation fee which is subject to property value.

Another two-year variable discount self-build mortgage has launched at 6.19%, available on an arrears basis up to 80% LTV. This comes with an application fee of £299, an arrangement fee of £649, and a valuation fee subject to property value.

Finally, a two-year partial fee-free variable discount self-build mortgage is available at 6.49%, available on an arrears basis up to 80% LTV. There are no application or arrangement fees on this product with Buildout Indemnity Cover insurance applicable and paid for by the Society. A valuation fee does remain in place which is subject to the property value.

In addition, Hanley Economic Building Society has bolstered its shared ownership product range with the launch of a no-fee, five-year fixed rate shared ownership mortgage with a headline rate of 5.89%.

The product will allow borrowers access to the shared ownership scheme for either house purchase or on a remortgage basis with only a 5% deposit. There are no application or product fees on this deal, and it also comes with a free valuation.

A minimum loan size of £30,000 is applicable on all these products and loans over £500,000 will be considered on an individual basis by the in-house underwriting team.

David Lownds, head of products and marketing at Hanley Economic Building Society, said: “Self-build is slowly but steadily growing in stature as a variety of borrowers are looking for alternative ways to deliver carbon neutral homes, design aspirational homes or even in helping family members onto the property ladder.

“We have been supporting the construction and renovation of homes across the UK for well over a decade. This remains a key market for the Society and one in which our experience and expertise can make a real difference for our intermediary partners and borrowers on their self-build journey.”