Hanley Economic Building Society has launched a 2-year interest-only self-build variable discount mortgage with an initial pay rate of 6.15%, available up to 70% loan-to-value (LTV).
The discount 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.
The product caters for a minimum loan size of £30,000 and a maximum loan size of £500,000 at 70% LTV, £1,000,000 at 60% LTV and £1,250,000 at 50% LTV.
This product is available through the Hanley Economic Building Society branch network and selected intermediary channels.
David Lownds, head of products and marketing at Hanley Economic Building Society, said: “As a lender with over 10 years’ experience operating in the self-build sector, we are always exploring how we can further enhance our product and service proposition by listening to the market and evolving accordingly.
“Consistent feedback has led to the introduction of an interest-only self-build option which is available for term.
“This means that even if the build completes before the product matures, the loan retains its interest-only status.
“We hope this product type will help generate further interest among self-builders across the UK and prove a useful solution for our intermediary partners in what remains a marketplace full of untapped potential.”
