Hanley Economic Building Society has launched a new 100% loan-to-value mortgage aimed at first-time buyers in and around Stoke-on-Trent, removing the need for a deposit under a Rent to Own structure.
The mutual’s latest five-year fixed rate mortgage, set at 5.79%, is available exclusively to buyers within the ST postcode area and is designed to help those currently renting to make the leap onto the property ladder. The ST postcode region covers Stoke-on-Trent and surrounding areas, encompassing 21 postcode districts across six post towns.
Available up to a maximum loan size of £350,000, the mortgage is open to applicants with a household income above £25,000 and who can demonstrate a 12-month record of making full rental payments. Loans can be approved up to 133% of current rental levels, subject to affordability and underwriting assessment.
Unlike most high LTV products, the Hanley’s Rent to Own mortgage does not require an upfront deposit, a move designed to support those struggling to save while managing ongoing rent. The lender is waiving both application and arrangement fees, although a valuation fee will apply depending on the property’s value. Overpayments of up to 10% a year are permitted without charge, but early repayment within the fixed period is subject to a 3% penalty.
David Lownds, head of products and marketing at Hanley Economic Building Society, said the product was developed with the specific challenges of local buyers in mind.
“This new 100% Rent to Own mortgage is designed to make homeownership a reality for those who may have struggled to save for a deposit,” he said. “By eliminating the need for an upfront deposit, we are offering a practical solution for individuals, couples and families across the ST postcode region who are ready to take their first step onto the property ladder.
“As a member-owned mutual, our focus is on providing innovative, accessible and responsible lending solutions that fit the evolving needs of the modern borrower. We remain committed to designing products that genuinely make a difference, and this launch is a testament to that mission.”
Applications will be assessed on a manual, case-by-case basis by Hanley Economic’s in-house underwriting team, with no automated credit scoring. The product is available directly through the building society’s branch network and selected intermediary channels.
