Hanley Economic BS bolsters shared ownership product range

26 March 2019

Hanley Economic Building Society has bolstered its shared ownership product range with the launch of 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. If this mortgage is repaid in full during the first 2 years an early repayment charge will apply. This will be 2% of the balance repaid during this period.

Hanley cites its competitive product range and the ability to 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 two-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.

David Lownds, Head of Marketing & Business Development at Hanley Economic Building Society, commented:

“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 FTBs, the bolstering of this range supports our aspirations as a forward-thinking building society to support even greater numbers of FTBs onto the property ladder.”