"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"
- David Lownds - Hanley Economic Building Society
Hanley Economic Building Society has announced that it has expanded its residential mortgage range with the launch of a new five-year fixed rate 100% LTV rent-to-own mortgage.
The new product, specifically available for properties within local ST postcodes, is designed to provide aspiring homeowners with a unique pathway to homeownership without the need for an initial deposit, offering support to first-time buyers seeking an accessible and affordable route onto the local property ladder.
The rent-to-own mortgage offers a five-year fixed rate of 5.79%, and is available up to 100% LTV for eligible applicants meeting the Society’s rent-to-own criteria. Eligible applicants must be purchasing a property situated within an ST postcode - ST refers to Stoke-on-Trent and its surrounding areas, encompassing 21 postcode districts within six post towns - and have a household income of over £25,000pa. Loans can be offered up to 133% of current rental payments, with proof required of full rental payments over a 12-month period.
There are no application or arrangement fees, ensuring reduced upfront costs, though a valuation fee is applicable, subject to the property’s value. An early repayment charge of 3% applies during the fixed rate period, but borrowers can make overpayments of up to 10% per year without penalties. The product comes with a maximum loan size of £350,000 and a minimum loan size of £30,000.
Each case will be assessed on an individual basis by the in-house underwriting team, meaning no credit scoring, and the product is available through the Hanley Economic Building Society branch network and selected intermediary channels.
“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, " explained the society's head of products and marketing, David Lownds.
"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."
He added, "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. We remain committed to designing products that genuinely make a difference, and this launch is a testament to that mission.”
