Hanley Economic Building Society has launched a new shared ownership product.
The offering is a 95 per cent LTV variable discount mortgage at 2.89 per cent – borrowers can stay on the product until the need to remortgage.
The offer is for purchase or remortgage and includes no application or product fees, with a maximum loan value of £500,000.
If the mortgage is repaid in full within the first two years, the ERC is 2 per cent of the balance repaid during this period.
The building society says each case will be looked at on an individual basis by an in-house underwriting team and includes no credit scoring.
The product will be available through Hanley’s branch network and selected intermediary channels.
Hanley Economic Building Society head of marketing and business development David Lownds comments: “Shared ownership is a market which plays to the strength of smaller, innovative, flexible lenders with strong regional knowledge as it is more complex than a standard residential transaction.
“It is a product area which requires the support of a registered social landlord and affordability assessments need to include the rental proportion of the property, both areas which add a layer of complexity to the transaction.”