"Self-build is a key growth area for us, and we’re excited to be expanding our proposition with this advanced stage payment product"
- David Lownds - Hanley Economic Building Society
Hanley Economic Building Society has introduced a two-year interest-only self-build variable discount mortgage with an initial pay rate of 5.84%. The product, available exclusively through BuildLoan, allows lending of up to 80% of build costs at each stage, with a maximum final loan-to-value (LTV) of 80%.
The mortgage offers greater flexibility for both borrowers and advisers. Earned income can now be considered for affordability up to the age of 75, surpassing the typical market cap of 70. Applications can also be submitted with outline planning permission in place for land purchases.
The advanced stage payment structure releases funds at the start of each construction stage. This approach provides borrowers with upfront cash flow to maintain momentum on their projects, reducing the need to rely on personal savings or short-term borrowing.
“Self-build is a key growth area for us, and we’re excited to be expanding our proposition with this advanced stage payment product,” said David Lownds, head of products and marketing at Hanley Economic Building Society. “Access to funds at the right time is often the biggest challenge for self-builders, so this is an important step in giving them greater flexibility and confidence."
"Partnering with BuildLoan allows us to offer not only the right finance but also the right level of expertise, making it easier for intermediaries to support clients through the unique challenges of self-build.”
Chris Martin, head of product development at BuildLoan, added, “We’re pleased to welcome Hanley Economic Building Society to our lender panel with this advanced stage payment mortgage. It’s a valuable addition to our range of products designed to deliver great outcomes for self-build clients."
"With upfront stage payments, borrowers gain the cashflow security they need to keep their projects on track. Our professional build cost assessment ensures stage releases are aligned with actual costs, and lending is based on build costs and end value, with no need for interim valuations. This package of benefits is exclusive to BuildLoan and provides the ultimate peace of mind for anyone building their own home.”
