Hanley Economic Building Society has launched a 5-year fixed rate 100% loan-to-value (LTV) ‘Rent to Own’ mortgage for properties in the ST postcode area, covering Stoke-on-Trent and nearby towns.
The product is aimed at first-time buyers (FTBs) who have struggled to save for a deposit.
The mortgage is set at a fixed rate of 5.79% for five years and requires no deposit.
Applicants must have a household income of over £25,000 per year and must be buying within the ST postcode.
Loans are available up to 133% of current rental payments, with proof needed of full rental payments over the past 12 months.
There are no application or arrangement fees, though a valuation fee applies depending on the property’s value.
Borrowers can make overpayments of up to 10% per year without penalty, but an early repayment charge (ERC) of 3% applies during the fixed period.
The minimum loan size is £30,000, while the maximum is £350,000.
David Lownds, head of products and marketing at Hanley Economic Building Society, said: “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.”
Lownds added: “We remain committed to designing products that genuinely make a difference, and this launch is a testament to that mission.”
