Hanley Economic Building Society has launched a new ‘part-complete self-build’ product, aimed at borrowing for projects that are already underway.

Different from traditional self-build financing, Hanley Economic said that the offering had been specifically developed following feedback from customers, intermediaries and self-build events.

The building society explained that the loan was aimed at people who may have already used all of their savings on a build, but had come across some unexpected costs and needed additional funds to finish the project. It added that this type of borrowing offered an alternative to specialist lending solutions such as bridging finance.

The new part-complete self-build product comes with a 3.25% two-year variable discount, at a 60% LTV and with a maximum loan amount of £500,000. Unlike other products in the lender’s self-build range, it does not have a minimum term and is penalty-free, having been designed to offer maximum flexibility for borrowers.

Specialist qualifying criteria includes a property with a minimum of wall plate level for self-build or full structural overhaul, including roofing and damp-proof course in respect of a renovation; having an acceptable warranty in place; and needing a minimum of two stage releases still to be undertaken.

Hanley Economic Building Society’s head of marketing and business development, David Lownds, said of the new offering: “Our new part-complete self-build product has been carefully created to provide additional choice and flexibility for self-builders, and acts as a competitor to alternative solutions such as bridging finance.

“Unlike our other self-build products which have a minimum term of a year, this doesn’t carry any minimum term, as we appreciate that some projects for this mortgage type simply won’t take that long. This is an exciting new product which we believe will help fill an important gap for self-builders and provide them with a cost-effective solution to ensure they can finish their dream project.”

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