It also launches a no-fee five-year fixed rate shared ownership offering
Hanley Economic Building Society has introduced a new suite of self-build products, with rates from 5.75%.
One of these products is a two-year variable discount self-build/renovation part-built mortgage with a starting pay rate of 5.75%, available on an arrears basis up to 60% loan-to-value (LTV). It includes a non-refundable £299 application fee, a deducted £1,199 arrangement fee upon completion, and a property value-dependent valuation fee.
For eligibility, the property must be at a minimum of wall plate level for self-build or undergoing a full structural overhaul, including roofing and damp proof course, for renovations. The property must also be covered by an acceptable warranty provider.
Also launched are three two-year variable discount self-build mortgages. The first offers an initial pay rate of 5.99%, accessible on an arrears basis up to 60% LTV, with a non-refundable £299 application fee, a deducted £700 arrangement fee upon completion, and a property value-dependent valuation fee.
The second provides a two-year variable discount self-build mortgage with an initial pay rate of 6.19%, available on an arrears basis up to 80% LTV. It includes a non-refundable £299 application fee, a deducted £649 arrangement fee upon completion, and a valuation fee dependent on property value.
The third is a two-year partial fee-free variable discount self-build mortgage with an initial pay rate of 6.49%, available on an arrears basis up to 80% LTV. This product has no application or arrangement fees, with Buildout Indemnity Cover insurance covered by the lender. A property value-dependent valuation fee is applicable.
The launch is part of a dedicated self-build campaign, with the mutual participating in 11 self-build events over the next year to engage with self-builders and provide additional support for intermediaries dealing with self-build clients.
Additionally, Hanley Economic Building Society has expanded its shared ownership product range by introducing a no-fee, five-year fixed rate shared ownership mortgage at a headline rate of 5.89%. The product allows access to the shared ownership scheme for house purchase or remortgage with only a 5% deposit. There are no application or product fees, and it includes a free valuation.
A minimum loan size of £30,000 applies to all products, and loans exceeding £500,000 will be considered on an individual basis by the in-house underwriting team. These products are accessible through the Hanley Economic Building Society branch network and selected intermediary channels.
“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 on to the property ladder,” David Lownds (pictured), head of products and marketing at Hanley Economic Building Society, commented.
“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.”
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