Hanley Economic Building Society has launched a new Home Renovation Mortgage, designed to support the growing number of homeowners opting to stay put and upgrade their existing properties rather than move – a trend that continues to gain traction across the UK housing market.
The new offering replaces the society’s previous Light Refurbishment Mortgage and is aimed specifically at borrowers planning cosmetic home improvements.
With an emphasis on flexibility and borrower accessibility, the product is structured to appeal to both homebuyers and remortgage customers.
And according to David Lownds, Head of Products and Marketing at Hanley Economic, the refreshed product is a direct response to shifting borrower behaviour.
CLIENT ENGAGEMENT
He says: “We’re seeing a clear preference among homeowners to invest in their current properties rather than face the costs and uncertainty of moving.
“This mortgage is designed to be simple, flexible, and aligned with that mindset.”
For property professionals, the product offers an opportunity to engage with clients exploring home improvement routes, especially those seeking bespoke lending solutions that sit outside rigid automated credit models.
Hanley’s manual underwriting approach means applicants are assessed individually, with the potential for more nuanced lending decisions.
The Home Renovation Mortgage is available via Hanley Economic’s branch network and selected intermediary partners, and can be used for properties across England, Wales, and Scotland, with Scottish Islands considered on referral.
With renovation and refurbishment activity remaining a strong driver of property-related services, Hanley Economic’s move is likely to resonate with many.
KEY FEATURES
Key features include 2-year discounted variable rate of 5.64%, reflecting a 2.85% discount from Hanley’s standard variable rate (currently 8.49%).
It also offers interest-only repayments during the initial period, before reverting to capital and interest and LTV options up to 80%, with maximum loan sizes ranging from £750,000 at 80% LTV up to £2 million at 50% LTV.
There are no early repayment charges and Free Buildout Indemnity Cover is available providing added protection during renovation works.
Hanley does manual underwriting with no credit scoring and fees include a £299 application fee and a £999 arrangement fee.
