First-time Buyer  

Hanley launches no-fee shared ownership deal

Hanley launches no-fee shared ownership deal

Hanley Economic Building Society has expanded its shared ownership mortgage range with a no-fee 2.99 per cent two-year fixed deal.

The product is available at 95 per cent loan-to-value and will allow borrowers access to the shared ownership scheme for house purchases or remortgages with only a 5 per cent deposit.

The minimum loan amount is £30,000, with a maximum of £500,000, while no application or product fees apply.

Hanley has also launched a 2.85 per cent two-year fixed rate mortgage at 95 per cent LTV, available for house purchase and remortgages.

The product has a £250 application fee and comes with one free standard valuation and free legals for remortgage customers.

The minimum loan amount is £30,000, with a maximum of £500,000.

Both products have an early redemption charge if the mortgage is repaid in full before March 31, 2021, at 2 per cent of the balance repaid.

Hanley stated each case will be looked at on an individual basis, meaning no credit scoring.

The products are available through the Hanley Economic Building Society branch network and selected intermediary channels.

David Lownds, head of marketing and business development at Hanley Economic Building Society, said: "Although these products are also available on a remortgage basis, we expect them to generate great interest amongst the growing number of first-time buyers whose appetite for homeownership only appears to be rising despite lingering political and economic uncertainly.

"With a variety of borrowers needing all the support they can get, we are delighted to be in a position to improve our higher LTV offering to increase competition within this narrow lending band.

"Shared ownership is an important initiative for first-time buyers, and we are looking to utilise this product range to help even more homebuyers and intermediaries realise the vast potential attached to it."

Nicholas Morrey, product technical manager at John Charcol, said Hanley's 2.99 per cent rate was highly competitive.

He said: "The product places Hanley above most other lenders offering shared ownership deals, and is second only to Barclays which has a 2.77 per cent two-year fix.

"As the government looks to phase out Help to Buy schemes in the coming years, shared equity and shared ownership will become increasingly important in filling the gap."

Dippy Singh is a freelance journalist