Hanley Economic Building Society said the deal aims to support borrowers making improvements to their home, such as kitchen or bathroom renovations or general cosmetic alterations.
The product offers an initial variable discounted pay rate of 5.64% for two years, which is a 2.85% discount off the society’s standard variable rate.
The maximum loan to value (LTV) goes up to 80% and is available for purchase or remortgage.
The mortgage is interest-only for the initial two-year term before moving to a capital and interest repayment structure.
Loans go from £30,000 up to a maximum of £750,000 at 80% LTV, £1m at 70% LTV, £1.5m at 65% LTV and £2m at 50% LTV.
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There is a £299 application fee, £999 arrangement fee and no early repayment charge. The deal also comes with build-out indemnity insurance.
David Lownds, head of products and marketing at Hanley Economic Building Society, commented: “We’ve introduced the Home Renovation Mortgage to better reflect the needs of the modern borrower. 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 benefitting from our manual approach to underwriting and the personalised service we pride ourselves on.”
In February, the mutual enhanced its retirement interest-only (RIO) range.
Melton BS expands credit repair range with higher LTVs
Melton Building Society has expanded its credit repair range to offer higher LTVs on fixed and discounted products.
The mutual said this would “support a broader range of customers with past credit challenges”.
The LTV increases range from 5% to 10%, with near prime enhanced and now offering fixed and discounted products up to a max of 80% LTV, currently 70% LTV.
Near prime, credit assist and credit recovery will now offer fixed and discounted products at 75% LTV, currently 70% LTV.
William Bell, Melton Building Society’s mortgage product manager, said: “As we embark on our 150th anniversary and join the Building Society Association in celebrating their 250th anniversary, it is imperative we don’t forget the original purpose of a building society: to make homeownership more accessible.”
“These exciting changes highlight our efforts to support customers with issues on their credit history, deliberately demonstrating how we as Melton Building Society have remembered our heritage and focused on the basics of putting roofs over as many people’s heads as we can.”
