New product replaces Light Refurbishment deal, offering financing for cosmetic home upgrades
Hanley Economic Building Society has rolled out a new mortgage aimed at borrowers looking to carry out cosmetic improvements to their homes.
The new offering, called the Home Renovation Mortgage, takes the place of the lender’s earlier Light Refurbishment product. It is intended to support projects like kitchen and bathroom updates or general home enhancements, rather than major building work.
Borrowers can access a two-year discounted variable rate of 5.64%, reflecting a 2.85% reduction from the mutual’s current standard variable rate of 8.49%. The mortgage is structured as interest-only during the initial two years, after which it switches to a capital and interest repayment basis.
Loan amounts start at £30,000, with limits varying by loan-to-value (LTV) ratios: up to £750,000 at 80% LTV, £1 million at 70%, £1.5 million at 65%, and £2 million at 50%. The product includes a £299 application charge and a £999 arrangement fee. There is no penalty for early repayment, and buildout indemnity cover is included, with costs covered by the lender.
The product is available for both purchase and remortgage, and will be offered throughout England, Wales and Scotland (with the Scottish Islands available by referral). Hanley Economic will assess all applications manually via its internal underwriting team, with no use of credit scoring. The mortgage can be accessed through the mutual’s branches and select intermediary partners.
This launch follows a series of recent product updates from Hanley Economic, including a fee-free two-year tracker at 95% LTV with an initial rate of 5.75%, and a two-year fixed rate retirement interest-only mortgage, available up to 65% LTV at 5.29%.
“We’ve introduced the Home Renovation Mortgage to better reflect the needs of the modern borrower,” said David Lownds (pictured), head of products and marketing at Hanley Economic Building Society. “With more people choosing to renovate and enhance their homes, this product provides a flexible and cost-effective way to finance these improvements.
“This has been designed with simplicity and accessibility in mind, helping borrowers to achieve their design and lifestyle goals while still benefiting from our manual approach to underwriting and the personalised service we pride ourselves on.”
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