Hanley Economic Building Society has introduced a two-year interest-only self-build variable discount mortgage with an initial pay rate of 5.84%.

Available exclusively through BuildLoan, the product allows lending of up to 80% of build costs at each stage, subject to a maximum final loan-to-value (LTV) of 80%.

This new product introduces greater flexibility to both borrowers and advisers by allowing earned income to be considered for affordability up to the age of 75, extending beyond the common market cap of 70, and by accepting applications with outline planning permission in place to purchase land.

The advanced stage payment structure is designed to release funds at the beginning of each stage of construction, providing borrowers with vital upfront cash flow to keep projects moving smoothly and reducing reliance on personal funds or short-term borrowing.

BuildLoan is a specialist distributor of finance for self-builders.

Hanley Economic head of products and marketing David Lownds commented: “Self-build is a key growth area for us, and we’re excited to be expanding our proposition with this advanced stage payment product. Access to funds at the right time is often the biggest challenge for self-builders, so this is an important step in giving them greater flexibility and confidence.”

He added: “Partnering with BuildLoan allows us to offer not only the right finance but also the right level of expertise, making it easier for intermediaries to support clients through the unique challenges of self-build.”