Home renovation loan launched by Hanley Economic BS

April 10, 2025 by Heidi

House building

Hanley Economic Building Society has announced the launch of a new loan that is targeted at people who want to make improvements to their homes, and which is a replacement for an earlier product.

This brand new loan has been given the name the Home Renovation Mortgage and it will replace the product called the Light Refurbishment loan. The lender has also revealed details about which kinds of improvement projects will be eligible. People who want to carry out small-scale upgrades, such as those to bathrooms or kitchens, will be able to apply for one of the loans. It is not available for larger construction projects, though.

The mortgage will be on offer with a discounted variable rate for a period of two years. That rate has been set at 5.64%, which is considerably lower than the standard variable rate being offered by the lender at the moment. That is set at 8.49%, amounting to a difference of 2.85%.

It is also an interest-only loan for that two-year period. Following the end of it, repayments will be made on both an interest and capital basis. The smallest loan size available will be £30,000, while the maximum that can be borrowed is £2 million. That size of loan will come with loan to value (LTV) of 50%. The application charge has been set at £299, with an arrangement fee of £999.

Mortgage advisors who have CeMAP training are sure to get clients who are keen to take advantage of this loan, given the current cost of living crisis.