First time house buyers should use Hanley Economic Building Society, say finance experts.
FIRST time buyers are being steered towards The Hanley Economic Building Society after an independent consumer guide rated it as one of the top five in the country for helping people wanting a loan for their first house.
Moneyfacts puts The Hanley among its star performers for helping people get onto the property ladder. The Hanley's package of a maximum LTV (loan to value) of 95 per cent at 5.49 per cent fixed to the end of March 2018 with a £200 arrangement fee, advances from £30,000 and overpayment allowed, was praised by Moneyfacts which says: "This fixed-rate mortgage offers a good all-round deal to those buying their first home. As well as a competitive rate, borrowers can make overpayments of up 10 per cent of the outstanding balance. There is the choice to add the £200 arrangement fee to the advance or paid up front."
Its findings come at a time when this sector of the market, often regarded as the foundation of the entire housing market because it helps to unlock chains further up the price structure, is one again growing and as experts say that with property prices looking to remain stable that buying is better than renting.
David Lownds, head of operations, senior manager, says that business with first time buyers is soaring, up by nearly a fifth year–on-year.
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He says: "At The Hanley we take great satisfaction by enabling local First Time Buyers (FTB) to get on to the property ladder. The FTB market is a market that the society is very much engaged in and can be demonstrated with a 17 per cent increases year on year in loans provided to FTB.
"Our appetite to lend locally at very competitive rates as been commented on by a number of industry commentators including the independent comparison company Moneyfacts. As an example last week we launched a 10 per cent deposit mortgage with a pay rate of 4.20 per cent fixed for five years with no fees. This product was give a five star rating and classed as a 'Stellar' deal by Moneyfacts.
"It's not just products that are bringing first time buyers to The Hanley. Our mutual model is one that customers like and our culture has always been to treat customers fairly, openly and honestly. We look at each customer's individual circumstances rather than rely upon a mechanistic credit score.''
David adds that although the recession has had a heavy impact on the FTB market nationally, the traditionally low property prices in and around North Staffordshire is now helping first timers.
He says: "There is no doubt that the recession has impacted the FTB market because purchasing your first home is a major decision.
"However Stoke-on-Trent remains an area of the country in which property prices are more viable than in most other cities in the country."