ECO self-build mortgage

This direct mortgage route lends £10,000 to £1 million for an energy-efficient self-build or renovation. For loans up to £750,000, borrowing can reach 80% of the property's value during construction and on completion. Above £750,000 and up to £1 million, the limit is 70% at both stages. This loan-to-value limit is the share of the property's value that the mortgage can cover.

The first two years have a variable interest rate set at 1.64 percentage points below Hanley Economic Building Society's standard variable rate. The published initial rate is 6.10%, based on a standard variable rate of 7.74%. Your rate can change as that standard rate changes, but cannot fall below 2%. After two years, the mortgage uses the Society's standard variable rate. The published representative annual percentage rate of charge (APRC), which compares the overall borrowing cost including charges, is 7.8%.

For the first two years, payments cover interest without reducing the amount borrowed. The mortgage then switches to payments that cover both interest and repayment of the loan. If you complete the property earlier, the product permits a switch to the Society's residential mortgage range without an early repayment charge, once it receives the final completion certificate.

The £299 application fee is payable when you apply and is non-refundable. The £1,899 arrangement fee can be paid on application or deducted from the loan on completion; interest is charged when deducted. It is refundable if the application does not reach completion. The £35 CHAPS fee covers electronic transfer of mortgage funds to you or your solicitor. It can also be paid on application or deducted on completion with interest charged, and is refundable if the loan does not complete.

A valuation fee is payable on application and becomes non-refundable after the valuation. Published mortgage valuation fees range from £210 to £2,000 depending on the property's price or estimated value; extra valuer travel charges can apply, with notice before the valuer is instructed. Self-build reinspections cost £150. The product's representative example also includes a £125 mortgage exit fee.

The product's specific early repayment rule says a charge applies only if you refinance with another lender during the two-year incentive period. The charge is 2% of the amount repaid. Its overpayment terms allow up to 10% of the mortgage balance each anniversary year during those two years, by standing order or lump sum, without a charge; the general charge wording applies to additional overpayments above that allowance, subject to the product-specific refinancing qualification. The completion switch described above is expressly free of this charge.