The Rent to Own mortgage is a five-year fixed rate at 5.79% and is available up to 100% LTV for eligible applicants meeting the required criteria.
Eligible applicants must buy a property within an ST postcode, which is Stoke-on-Trent and the surrounding areas. This encompasses 21 postcode districts within six post towns.
The household income in these areas stands at £25,000 per year.
Loans can be offered up to 133% of current rental payments, with proof required of full rental payments over a 12-month period.
The product has no application or arrangement fees, so there are reduced upfront costs. A valuation fee is applicable, subject to the property’s value.
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An early repayment charge (ERC) of 3% applies in the fixed rate period, but 10% overpayments each year are allowed without penalties.
The maximum loan size is £350,000 and the minimum loan size is £30,000.
David Lownds (pictured), head of products and marketing at Hanley Economic Building Society, said: “This new 100% Rent to Own mortgage is designed to make homeownership a reality for those who may have struggled to save for a deposit. By eliminating the need for an upfront deposit, we are offering a practical solution for individuals, couples and families across the ST postcode region who are ready to take their first step onto the property ladder.
“As a member-owned mutual, our focus is on providing innovative, accessible and responsible lending solutions that fit the evolving needs of the modern borrower. We remain committed to designing products that genuinely make a difference, and this launch is a testament to that mission.”
Last month, the firm announced the launch of a home renovation mortgage.
