Hanley Economic Building Society has introduced a two-year interest-only self-build variable discount mortgage with an initial pay rate of 5.84%, marking a targeted expansion of its proposition in the specialist sector.
The product offers lending of up to 80% of build costs at each stage, with a maximum final loan to value of 80%.
The new mortgage is designed to give borrowers greater flexibility, including the ability for earned income to be considered for affordability up to the age of 75.
The Society will also accept applications with outline planning permission in place for land purchases, widening access for prospective self-builders.
The advanced stage payment model provides funds at the start of each construction phase, helping borrowers to maintain momentum and manage cash flow without relying on personal reserves or short-term finance.
Hanley said the launch supports its ambition to broaden choice for borrowers and enhance intermediary support as demand for bespoke homes continues to strengthen.
MARKET EXPANSION
BuildLoan, which distributes the product exclusively, remains a prominent specialist provider of self-build finance and offers advisers support throughout the process.
David Lownds, head of products and marketing at Hanley Economic Building Society, said: “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.”
