Hanley Economic

Building society increases LTV on new build



Hanley Economic Building Society has extended the LTV on new-build homes and flats to 95% across selected products within its residential mortgage range, including a shared ownership offering.

The announcement follows increased demand from intermediary partners, whereby a growing number of clients are reported to be seeking higher LTV lending options across a range of new-build property types.

The products where 95% LTV on new-build properties is included are:

a two-year 3.45% shared ownership variable discount mortgage
a five-year 2.95% discount mortgage
a two-year 3.49% fixed rate mortgage

In order to maintain regulatory and responsible lending boundaries, Hanley Economic has adopted an acceptable and unacceptable property remit.

David Lownds, head of marketing and business development at Hanley Economic (pictured above), claimed that many lenders in the past had avoided some areas of new build due to a lack of appetite and portfolio risk.

“Thankfully times are changing – albeit slowly – and, therefore, there are still only a few providers lending up to 95% LTV on both houses and flats.

“We are delighted to be in a position to extend our offering to increase competition within this narrow lending band.

“As a forward-thinking building society, we are always looking for ways to evolve and innovate to meet the changing needs of all types of buyers.

“Greater choice – backed by a flexible and experienced manual underwriting process – will help even more homebuyers and intermediaries across the UK to realise the vast potential attached to the new-build sector.”


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