It is targetted at those who have a room in their homes which functions as a business space, such as beauty therapists, dog groomers, bakers and counsellors.
The mutual said the product was essentially a semi-commercial offering which would allow people to buy homes with residential and commercial elements.
Criteria permits only one room to be used for business purposes and no structural alterations or adaptations must be made to accommodate this use.
No employees, except for close relatives, can work on the premises and external advertising must be discreet. There must be no elements at the property which prevent business use and the insurer must agree and be aware of the intended purpose.
Just 50 per cent of the income earned from the business carried out on the property can be used for mortgage affordability and other earned income will be assessed as normal.
The product has a maximum loan to value of 50 per cent and an initial rate of 4.54 per cent for five years. This a 1.05 per cent discount on the mutual’s current Standard Variable Rate.
It has a £999 arrangement fee and early repayment charges apply for the first three years.
Paul Tilley, chief executive of ESBS, said: “With the rising popularity of working from home in all sorts of industries, we’re proud to be supporting our members in establishing or growing their businesses.
“I’d encourage anyone thinking of exploring that option to get in touch with our expert mortgage advisers and get the process started.”
