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Hanley Economic boosts options for first-time buyers

The Hanley Economic Building Society has improved the options available for first-time buyers by adding an attractive 95% mortgage to its range.
Hanley Economic boosts options for first-time buyers

 

The Staffordshire-based society has added two fixed-rate deals to its portfolio, including a new 95% loan-to-value deal priced at 4.89% until 28.2.17.

 

The new deal enters the market a quarter-point higher than the lowest deal available, which is the branch-only offer from the Chelsea Building Society at 4.64%.

 

However, the Hanley mortgage has no arrangement fee, which saves a substantial amount on the £1,545 charged by Chelsea.

 

On a new loan of £150,000, for example, the Chelsea deal would cost £21,842 over the two-year offer period, while the Hanley deal would cost £20,815 – over £1,000 cheaper.

 

Find out more about how arrangement fees influence the cost of mortgage deals.

 

The new deal is a shining example of why the society has made the finalists list for the Moneyfacts’ first-time buyer award, and why it may ruffle some feathers among its bigger name rivals.

 

Other innovative deals on the market at this loan-to-value range include the 2-year discount mortgage from the Leeds Building Society.

 

The society, which is renowned for its creative approach to mortgages from new homebuyers, offers a 1.70% discount on its standard variable rate in the first instance (currently 3.99%), followed by a discount of 1.00% for years 3 to 5 (currently 4.69%).

 

The mortgage comes with a £199 booking fee and a £500 arrangement fee, but offers a free valuation worth up to £335.

 

Keith McDonald

Which4U Editor

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