Hanley Economic Building Society has launched a suite of self-build home loans that start at 5.75%.
The first is a two-year variable discount self-build/renovation part-built mortgage, with an initial pay rate of 5.75%, available on an arrears basis up to 60% loan to value.
It comes with a non-refundable application fee of £299, an arrangement fee of £1,199 – deducted from the loan on completion — and a valuation fee, which is subject to property value.
To qualify for this loan, the property should be at a minimum 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 mutual also offers a trio of two-year variable discount self-build mortgages.
There is a two-year variable discount self-build mortgage with an initial pay rate of 5.99%, available on an arrears basis up to 60% LTV. This comes with a non-refundable application fee of £299, an arrangement fee of £700 – deducted from the loan on completion — and a valuation fee, which is subject to property value.
This is also 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.
This comes with a non-refundable application fee of £299, an arrangement fee of £649 – deducted from the loan on completion — and a valuation fee, which is subject to property value.
Finally, there 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.
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.
The business has also bolstered its shared ownership range, with the launch of a no-fee, five-year fixed-rate shared ownership home loan with a headline rate of 5.89%.
The product allows borrowers access to the shared ownership scheme, for house purchases or remortgages, 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.
Hanley Economic Building Society head of products and marketing David Lownds says: “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.”
