Hanley Economic and Construction Association has expanded its residential mortgage scope to own mortgages by launching a five-year fixed-rate 100% loan price (LTV) rental.
The new mortgage is dedicated to properties within the local ST postal code. St refers to Stoke-on-Trent and its surrounding areas, including 21 postal codes for six postal districts.
Eligible applicants must also have a family income of more than 25,000 pa.
The rent on a mortgage is 5.79% for a five-year fixed interest rate, which can be used to meet the 100% LTV of qualified applicants who meet the association’s rent.
The loan provides up to 133% of the current rent and provides proof of full rent within 12 months.
Despite the applicable valuation fees, there are no application or arrangement fees, but the value of the property is subject to compliance.
The product has an early repayment fee of 3% during fixed interest rates, but the borrower can pay up to 10% more per year without being fined.
The maximum loan size for this product is £350,000 and the minimum loan size is £30,000.
“This new 100% rent is for owning a mortgage to make the reality of the home a reality because those who may work hard to save their savings,” said David Lownds, head of product and marketing at Hanley Economic and Construction Association.
“By eliminating the need for advance payments, we provide practical solutions for individuals, couples and families throughout the St Post Code area, ready to take the first step.”
