Intermediary General Mortgage Information

Before you take out a mortgage with Hanley Economic please take a little time to read our Intermediary General Mortgage Information below

Type of Mortgages

Hanley Economic offers mortgages for the purpose of purchasing, re-mortgaging, re-mortgaging including capital raising and providing further funding for home improvements against a residential property on a first charge basis. Hanley Economic offers a range of different types of mortgages listed below. There may be times when a specific type of mortgage is not offered. You can find our current mortgage deals on our mortgage products page.

Fixed Rate Mortgages

Where the initial payments are based on a specific interest rate for a set period of time, regardless of whether the lender’s standard variable rate changes or not. These mortgages are great as a way to budget as you always know how much the monthly payment is, however, you could lose out if interest rates drop but may be better off if interest rates increase.

Discount Rate Mortgages

The interest rate is represented as a discount off the lender’s current standard variable rate for a certain period of time. These rates can go up as well as down over the period of the loan and although you may start off with a low rate you need to ensure your monthly budget allows for variation in your mortgage payment (this type of mortgage has no link with The Bank of England Base Rate).

Standard Variable Rate Mortgages

Where the interest rate is determined by the lender. These rates can go up as well as down over the period of the loan and you need to ensure your monthly budget allows for variation in your mortgage payment (this type of mortgage has no link with The Bank of England Base Rate).

Base Rate Tracker Mortgages

Where the interest rate goes up and down in line with the Bank of England Base Rate. The pay rate may be a specific rate above or below the Bank of England Base Rate. You may start off with a lower rate but are not guaranteed that this won’t increase in the future.

Repayment Options

Hanley Economic offers mortgages on a Capital and Interest (Repayment) basis, an Interest Only basis and a combination of both Repayment & Interest Only. Mortgage customers who choose Interest only as a repayment option have the responsibility to ensure the capital is repaid at the end of the loan. These customers are advised to regularly check the performance of any investment that is to be used as a repayment vehicle. Where the repayment vehicle is the property there must be a minimum of £250,000 equity. Mortgage payments are to be made on a monthly basis by direct debit over the specified mortgage term.

Criteria Restrictions

  • Hanley  Economic does not provide Foreign Currency mortgages
  • Hanley Economic provides mortgages with a minimum term of 1 year and a maximum term of up to 40 years

European Standardised Information Sheet (ESIS)

This document highlights the key features and risks of the mortgage contract and is disclosed to the customer before mortgage completion

Early Repayment Charges

An early repayment charge is a charge that is applied if a borrower redeems their mortgage before the end of their incentive interest rate period on selected products. The charge is stated in the product details of all products and is calculated as a percentage of the balance repaid. Full terms and conditions are displayed on the product page.  Early repayment charges will be shown within the ESIS

Representative Example

A mortgage of £153,000 payable over 25 years on our Standard Variable Rate (SVR) of 5.44% would require 300 monthly payments of £934.08

The total amount payable would be £280,604.35 made up of the loan amount plus interest (£127,164.35) a valuation fee of £260, a funds transfer fee of £35 and a mortgage exit fee of £95

The overall cost for comparison is 5.7% APRC representative

Additional Charges

Please see Hanley Economic’s list of additional charges that are not included in the total cost of the mortgage. The mortgage charges are available on this website or a copy is available on request from any of the Society’s branches

Valuation

All mortgage approvals are subject to the property having a mortgage valuation carried out on behalf of Hanley Intermediaries. Depending on the mortgage product on offer at the time of application, a fee may be payable. Details of our valuation fees can be found here.

Insurances

There are no compulsory insurances that have to be taken out through Hanley Economic however buildings insurance must be in place prior to completion of the mortgage.

Portability

The product is portable if you move house subject to the new consecutive loan being for at least the same amount of this mortgage and to be no greater than the loan to value as the current mortgage.  The product may not be available in respect of any increase in borrowing or loan to value if you move house.  In this instance The Hanley Economic may offer you an alternative product.  If you decide to take out another product where you move house the early repayment charges will apply.

Overpayments

Any payment in excess of the contractual payments are knows as an overpayment.  Overpayment restrictions will be detailed on the product page. Overpayments can be made by monthly standing order, or in the form of a lump sum. Overpayment restrictions may be applied if you transfer your mortgage to another product

Fees

Fee details are detailed on the product page

Payment Holidays

Payment holidays are not permitted

Loan to Value Restrictions (LTV)

LTV restrictions are included on each product on the product page

Loan Size

Minimum and maximum loan available are detailed within each product on the product page

Minimum Interest Rate (Floor Rate)

The minimum interest rate is detailed within each product on the product page

Maximum Interest Rate (Capped Rate)

The maximum interest rate where applicable will be detailed within the product on the product page

Property Location

Hanley Economic only lends on properties in England, Wales and Scotland (Scottish Islands on a referral basis only). Individual country restrictions apply on some products.

Property Price

Property price and restrictions are shown within each product on the property page

Incentives

Incentives where applicable are detailed within each product on the product page.  Examples of incentives are:  Valuation fee (up to a specified amount), cashback and legal fees

Interim Interest

Interim interest is the interest from the date of completion to the end of the month.  The first payment will be due in the month following completion and will include the interim interest.

LIBOR related mortgages

From time to time the Society offers mortgage products that are linked to the London Interbank Offered Rate (LIBOR).
We review LIBOR quarterly and inform borrowers who have a LIBOR linked mortgage of any change to their interest rate.
LIBOR is set by the Intercontinental Exchange (ICE). You can find out information about current and historic LIBOR using the link below. Please select the currency as GBP, and the date of your choice to display the relevant rates : https://www.theice.com/marketdata/reports/170.

Re-mortgage Legal Fees

Where applicable there will be no legal fees payable where the Society’s re-mortgage scheme is used up to a maximum of £250, subject to there being no additional legal work involved, for example, the postponement  of a second mortgage, transfer of equity or additional leasehold work. Where the loan exceeds £250,000 then you will be responsible for any additional legal fees incurred. Applicants may choose to use their own            solicitors, but will be responsible for all costs. Applications in Scotland, the Society will provide £250 cashback on completion.

Higher Lending Charge

Where applicable a Higher Lending Charge will be displayed within the product information on the product page.

If the amount you borrow exceeds 80% of the property’s value you may be charged a Higher Lending Charge by The Hanley Economic.  The Hanley Economic uses this fee to take out insurance to protect itself against any losses incurred if the property needs to be taken into possession.  It is common practice for lenders to pass this charge onto the borrower, however on some occasions The Hanley Economic may not charge for this insurance but still may take out cover.

It is important to understand the facts about the Higher Lending Charge.  It acts as a form of insurance for The Hanley Economic and not the borrower.  This means that The Hanley Economic can claim part, or all of its losses incurred in the event of repossession from the insurance company providing the cover.  It should be noted that following repossession the former borrower will remain liable for any sums owing (shortfall between the selling price and the mortgage balance outstanding, plus any arrears.  Legal costs and any other charges associated with the repossession will be applied to the mortgage.  The insurance company can then pursue you for payment at a subsequent date.

Once a company has made a payment for a financial loss which someone other than the policyholder is responsible, it may have the right to recover the loss from the party.  This is called subrogation.

Build-Out Indemnity Insurance

Build-out indemnity insurance may be taken out by your lender as additional security for itself. You can find out more in our borrower’s guide to Build-Out Indemnity Insurance here.