After comparing the two options, the building society decided the Help to Buy guarantee would add an extra burden of administration with little difference in price.
Hanley head of operations David Lowndes said: “We want to offer the best deals for our customers. We think we can do that by staying out of the government scheme but still offering 5% and 10% deposit deals for customers.”
The building society already has a relationship with private mortgage insurance provider Genworth. It calculated moving to the Help to Buy scheme will mean more reporting requirements and new criteria, while prices will remain roughly the same.
Genworth Mortgage Insurance Europe commercial vice president Simon Crone said the provider had been talking to its existing clients: “Many lenders have pinpointed their intention to continue working in this vein in order to be free of government intervention in their higher lending activities and to ensure they do not have to seek support from the taxpayer at any point.”