The product is designed to support borrowers making improvements to their home – such as updating kitchens, bathrooms or carrying out general cosmetic alterations – rather than undertaking full-scale construction projects.

The Home Renovation Mortgage offers an initial variable discounted pay rate of 5.64% for two years, representing a 2.85% discount off the society’s standard variable rate (currently 8.49%). Available up to 80% LTV for both purchase and remortgage purposes, the mortgage is interest-only for the initial two-year term before reverting to a capital and interest repayment structure.

Loans are available from £30,000 up to a maximum of £750,000 at 80% LTV, £1,000,000 at 70% LTV, £1,500,000 at 65% LTV, and £2,000,000 at 50% LTV. The product comes with a £299 application fee and a £999 arrangement fee, and there is no early repayment charge.

The mortgage also includes buildout indemnity cover, which is paid for by the society.

Commenting on the launch Hanley Economic head of products David Lownds said: “We’ve introduced the Home Renovation Mortgage to better reflect the needs of the modern borrower.

“With more people choosing to renovate and enhance their homes, this product provides a flexible and cost-effective way to finance these improvements.”