According to the lender, the product has an initial two-year discounted pay rate of 1.94% and offers Help to Buy borrowers a remortgage option to remove the equity element of the loan and effectively take ownership of the whole property. The product offering includes a £1,000 cashback to help counter higher legal costs generated and a free valuation.
There are no additional fees and no credit scoring. The minimum loan amount is £30,000, with a maximum of £500,000. An early repayment charge of 3% of the balance will apply if the mortgage is repaid in full within the first two years. This product is 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: “This is a highly competitive product in a market which will see rising demand in the coming weeks and months. A wave of Help to Buy borrowers are currently evaluating their remortgage options and now is the perfect time for intermediaries to engage with such borrowers within their existing client bank.
Although switching from this scheme may not be the right decision for all Help to Buy borrowers, it’s encouraging that a small - but growing - number of options are becoming available to meet their remortgaging needs. And opportunities will continue to emerge for proactive intermediaries within this space.”
