General Mortgage Information

Question 1

European Standardised Information Sheet (ESIS)

Accepted Answer

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

Question 2

Overpayments

Accepted Answer

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

Question 3

Property Price

Accepted Answer

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

Question 4

Loan to Value Restrictions (LTV)

Accepted Answer

LTV restrictions are included on each product on the product page

Question 5

Payment Holidays

Accepted Answer

Payment holidays are not permitted

Question 6

Build-Out Indemnity Insurance

Accepted Answer

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.

Question 7

Incentives

Accepted Answer

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

Question 8

Higher Lending Charge

Accepted Answer

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.

Question 9

Discount Rate Mortgages

Accepted Answer

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).

Question 10

New Consumer Duty - Fair Value Assessment

Accepted Answer

Consumer Duty

Hanley Intermediaries recognises the FCA’s Consumer Duty is a priority  across the lending sector. To help you meet the FCA’s requirements we have published our Target Market statements and our Fair Value assessments in our Information for distributors sheets.

The information below is:

designed to support you in complying with your responsibilities under PRIN 2A.3.16 R and PRIN 2A.4.16 R; and

provided to you to fulfil our responsibilities under PRIN 2A.4.15R and PRIN 2A.3.12 R (2).

Please note that you are ultimately responsible for meeting your obligations under Consumer Duty.

Information for distributors

Summary of our assessment

Product characteristics & benefits

Target market assessment and distribution strategy

Customers with characteristics of vulnerability

Our assessment of value

We conduct fair value assessments at least annually, aligning with our proposition governance process. The fair value assessment statements provide you with the outcomes and conclusions of the latest completed fair value assessments.

Click here for our fair value assessments

Information we may request from distributors

We may from time-to-time request information from those distributors with which we have an agreement with. The information will be used to help us assess whether our products are being distributed as per our target markets and that borrowers are experiencing good outcomes.

Question 11

Criteria Restrictions

Accepted Answer

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

Question 12

Insurances

Accepted Answer

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.

Question 13

Early Repayment Charges

Accepted Answer

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

Question 14

Standard Variable Rate & Bank Base Rate History

Accepted Answer

The Society's Standard Variable Rate (SVR):

From 01 Dec 2008 5.85%

From 01 Jan 2009 5.35%

From 01 Feb 2009 4.99%

From 01 Apr 2009 4.74%

From 01 Mar 2010 5.19%

From 01 Sep 2016 4.94%

From 01 Dec 2017 5.19%

From 01 Sep 2018 5.44%

From 01 May 2020 4.79%

From 01 Aug 2022 5.69%

From 01 Nov 2022 6.44%

From 01 Dec 2022 6.99%

From 01 Jul 2023 7.44%

From 01 Sep 2023 7.99%

From 01 Dec 2023 8.49%

From 01 May 2025 8.24%

From 01 Jul 2025 7.99%

From 01 Oct 2025 7.84%

From 01 Feb 2026 7.74%

Bank of England Base Rate (For tracker products)

From 01 Dec 2008 3.00%

From 01 Jan 2009 2.00%

From 01 Feb 2009 1.50%

From 01 March 2009 1.00%

From 01 April 2009 0.50%

From 01 Sep 2016 0.25%

From 01 Dec 2017 0.50%

From 01 Sep 2018 0.75%

From 01 Apr 2020 0.10%

From 01 Jan 2022 0.25%

From 01 Mar 2022 0.50%

From 01 Apr 2022 0.75%

From 01 Jun 2022 1.00%

From 01 Jul 2022 1.25%

From 01 Sep 2022 1.75%

From 01 Oct 2022 2.25%

From 01 Dec 2022 3.00%

From 01 Jan 2023 3.50%

From 01 Feb 2023 4.00%

From 01 April 2023 4.25%

From 01 June 2023 4.50%

From 01 July 2023 5.00%

From 01 Sep 2023 5.25%

From 01 Sep 2024 5.00%

From 01 Dec 2024 4.75%

From 01 Mar 2025 4.50%

From 01 Jun 2025 4.25%

From 01 Sept 2025 4.00%

From 01 Jan 2026 3.75%

For a full list of Bank of England base rate changes click here.

Question 15

Representative Example

Accepted Answer

A mortgage of £153,000 payable over 25 years on our Standard Variable Rate (SVR) of 5.69% would require 300 monthly payments of £956.99.

The total amount payable would be £287,517.93 made up of the loan amount plus interest (£134,097.93) a valuation fee of £260, a funds transfer fee of £35 and a mortgage exit fee of £125

The overall cost for comparison is 5.7% APRC representative

Question 16

Additional Charges

Accepted Answer

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

Question 17

Type of Mortgages

Accepted Answer

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.

Question 18

Interim Interest

Accepted Answer

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.

Question 19

Minimum Interest Rate (Floor Rate)

Accepted Answer

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

Question 20

Property Location

Accepted Answer

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.

Question 21

Re-mortgage Legal Fees

Accepted Answer

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.

Question 22

Repayment Options

Accepted Answer

Hanley Economic offers mortgages on a Capital and Interest (Repayment) basis, and an Interest Only basis. 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.

Question 23

Maximum Interest Rate (Capped Rate)

Accepted Answer

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

Question 24

Valuation

Accepted Answer

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.

Question 25

Fixed Rate Mortgages

Accepted Answer

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.

Question 26

Loan Size

Accepted Answer

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

Question 27

Fees

Accepted Answer

Fee details are detailed on the product page

Question 28

Base Rate Tracker Mortgages

Accepted Answer

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.

Question 29

New Build Warranty Certification

Accepted Answer

The Society accepts the following warranties on new build properties

Premier’s “Guarantee for New Homes” (minimum warranty term 10 Years)

NHBC ‘Buildmark’ (minimum warranty term 10 years)

Self-Build Zone (minimum warranty term 10 years)

LABC Warranty (minimum warranty term 10 years)

Architects Certificate (minimum warranty term 6 years)

Building Lifeplans Ltd (BLP Allianz Guarantee) (minimum warranty term 10 years)

Castle 10 (Checkmate) (minimum warranty term 10 years)

Protek (minimum warranty term 10 years)

Question 30

Standard Variable Rate Mortgages (SVR)

Accepted Answer

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). The Society’s SVR from 1st December 2023 is 8.49%.

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