Hanley Economic BS launches shared ownership product

Michael Lloyd

March 26, 2019

Hanley Economic Building Society has launched a no-fee, shared ownership variable discount mortgage for term with a headline rate of 2.89%.

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 the minimum loan amount is £30,000, with a maximum of £500,000.

David Lownds, head of marketing and business development at Hanley Economic Building Society, said: “Shared ownership is a market which plays to the strength of smaller, innovative, flexible lenders with strong regional knowledge as it is more complex than a standard residential transaction.

“It is a product area which requires the support of a registered social landlord and affordability assessments need to include the rental proportion of the property, both areas which add a layer of complexity to the transaction.

“With the majority of shared ownership applicants being first-time buyers, the bolstering of this range supports our aspirations as a forward-thinking building society to support even greater numbers of first-time buyers onto the property ladder.”

If this mortgage is repaid in full during the first two years an early repayment charge will apply. This will be 2% of the balance repaid during this period.

Hanley can lend on new build properties and flats up to 95% of the share purchased as key driving forces behind the growth in its shared ownership business volumes.

February saw Hanley release a no-fee 2-year shared ownership fixed rate deal at 95% LTV with a headline rate of 2.99%. Other products in its shared ownership range include a 2.50% variable discount for two years, up to 90% LTV of applicants share.

Each case will be looked at on an individual basis by the in-house underwriting team, meaning no credit scoring, and both products are available through the Hanley Economic Building Society branch network and selected intermediary channels.

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