These changes aim to make shared ownership more accessible to both purchasers and remortgagers
Hanley Economic Building Society has announced updates to its shared ownership mortgage options, adding a new three-year fixed rate deal and reducing the rate on its medium-term fixed rate product by 60 basis points (bps).
The new mortgage option offers a three-year fixed rate at 5.65% for loans up to 95% loan-to-value (LTV).
Meanwhile, the rate cut brings the medium-term fixed rate mortgage – also available up to 95% LTV and maturing on November 30, 2028 – down to a headline rate of 5.20% from the previous 5.80%.
These changes, the mutual said, aim to make shared ownership more accessible, targeting both house purchasers and remortgagers with a low deposit threshold of 5%.
To further ease the financial burden on applicants, the lender has also removed application and arrangement fees for these products and included a free standard valuation. The loans, with a minimum amount of £30,000 and a cap of £500,000, are available for properties across England and Wales, covering new builds, including flats up to 10 storeys.
Hanley Economic also recently provided additional support for first-time buyers with a 70bps rate cut on its two-year 95% LTV fee-free fixed rate product.
“2024 has started with a constant stream of enquiries from a variety of first-time buyers who are now more aware of the interest rate landscape, their own borrowing capabilities, and their options,” said David Lownds, head of products and marketing at Hanley Economic Building Society.
“Shared ownership is playing an increasingly prominent role within many of these conversations, meaning it’s vital that we – as a lending community, alongside our intermediary partners – ensure that borrowers can access a range of competitive options in a responsible, appropriate and well-informed manner.”
Want to be regularly updated with mortgage news and features? Get exclusive interviews, breaking news, and industry events in your inbox – subscribe to our FREE daily newsletter. You can also follow us on Facebook, X (formerly Twitter), and LinkedIn.
