Hanley Economic Building Society has launched a new part-complete self-build product.
The self-build (part-complete) product is a 3.25% two-year variable discount with a 60% LTV and a maximum loan amount of £500,000. Unlike other products in the Society’s self-build range, this product does not have a minimum term, which offers maximum flexibility for borrowers and is penalty free.
This product has been created specifically on the back of extensive customer responses, research at specialist self-build events and intermediary feedback.
It is different from the self-build norm as it is aimed at borrowing for projects which are already underway. For example, an individual may have already used all of their savings in the build but then comes across some unexpected costs and needs additional funds to finish the project. This type of product offers an alternative to specialist lending solutions such as bridging finance.
Special product criteria includes:
- The property should be at a minimum of wall plate level for self-build or full structural overhaul including roofing and damp-proof course in respect of a renovation
- Have an acceptable warranty in place – as per Hanley’s list of providers on its self-build lending guide
- A minimum of two stage releases to be undertaken
In 2018, Hanley Economic Building Society launched a self-build direct to intermediaries’ proposition to provide an additional option for intermediaries with self-build clients. A dedicated intermediary team and experienced underwriters are on hand to assess each application on an individual basis.
An online self-build hub was also developed to help guide intermediaries and their clients through the self-build process. It is available at https://www.thehanley.co.uk/intermediaries/self-build-guide/self-build-criteria/
This hosts useful resources and information including:
- Self-build criteria
- Submitting an application
- Assessing your application
- Releasing funds
- Completion of the project
- Service standards
- Self-build downloads
David Lownds, Head of Marketing & Business Development at Hanley Economic Building Society, commented: “Our new part-complete self-build product has been carefully created to provide additional choice and flexibility for self-builders, and acts as a competitor to alternative solutions such as bridging finance. Unlike our other self-build products, which have a minimum term of a year, this doesn’t carry any minimum term as we appreciate that some projects for this mortgage type simply won’t take that long.”
“We’ve been helping self-builders to build or renovate their homes for roughly a decade now and have a wealth of knowledge and experience across a wide range of construction types – from traditional brick and block through to modern methods of construction. This is an exciting new product which we believe will help fill an important gap for self-builders and provide them with a cost-effective solution to ensure they can finish their dream project.”