Hanley Economic Building Society has launched a two-year interest-only self-build variable discount mortgage with an initial pay rate of 5.84%.
Available exclusively through BuildLoan, the product allows lending of up to 80% of build costs at each stage, subject to a maximum final LTV of 80%.
The new product introduces greater flexibility to both borrowers and advisers by allowing earned income to be considered for affordability up to the age of 75, extending beyond the common market cap of 70, and by accepting applications with outline planning permission in place to purchase land.
The advanced stage payment structure is designed to release funds at the beginning of each stage of construction, providing borrowers with vital upfront cash flow to keep projects moving smoothly and reducing reliance on personal funds or short-term borrowing.
David Lownds, head of products and marketing at Hanley Economic Building Society, commented: “Self-build is a key growth area for us, and we’re excited to be expanding our proposition with this advanced stage payment product. 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.”
