Hanley Economic Building Society

Hanley Economic Building Society, known as the Hanley, is a UK building society that lends on homes and takes savings from members. Its lending covers standard residential purchases and remortgages, self-build and custom-build projects, and further borrowing against a home for improvements, all secured on a first charge basis against a residential property¹. It also offers savings accounts, and money held with it is protected by the Financial Services Compensation Scheme up to £120,000 per saver².

The Hanley is a UK building society that lends on property and takes savings from its members. Its mortgages run from a minimum term of 1 year up to a maximum of 40 years, with payments made monthly by direct debit over the term³. Its permissions cover accepting deposits, entering into regulated mortgage contracts as lender, and entering into regulated credit agreements as lender³, and it appears on the Bank of England's list of building societies incorporated in the UK⁴.

What the Hanley offers

The Hanley is a mutual building society, which means it is owned by its members rather than shareholders, and its business is built around two things: lending money secured against homes in the UK, and taking savings from members.

On the lending side, the Hanley offers mortgages for the purpose of purchasing a property, remortgaging, remortgaging including capital raising, and providing further funding for home improvements, in each case secured against a residential property on a first charge basis¹. That covers the main reasons most people borrow against a home: buying one, moving lender or deal on one, releasing money against one, or funding work on one. It also provides finance for self-build and custom-build projects, which is a specialist area in which relatively few lenders operate: the Building Societies Association lists the Hanley among the building societies that provide this kind of finance⁵. If you are weighing up how a mortgage works in general, the mortgages guide explains the mechanics, and the home-buying guide covers the process of buying.

On the savings side, the Hanley takes deposits from members, and those deposits are what fund its lending. Savings with the Hanley are protected in the same way as savings with any UK bank or building society, up to £120,000 per person under the Financial Services Compensation Scheme². The savings guide explains the different types of savings account and how to compare them, and the ISAs guide covers tax-free saving. The Hanley's own website lists its current savings accounts and their terms.

The Hanley does not provide foreign currency mortgages¹, and it is a lender and deposit taker rather than a general insurer: as explained below, it requires buildings insurance on mortgaged properties but does not insist you buy cover through it.

Hanley mortgages: purposes, terms and repayment types

A Hanley mortgage can be used to buy a home, remortgage an existing loan, remortgage while raising capital, or fund home improvements against a residential property, always on a first charge basis¹. The mortgage is secured against your home, which means the society has a claim on the property if the mortgage is not repaid, as with any mortgage lender.

The Hanley provides mortgages with a minimum term of 1 year and a maximum term of up to 40 years¹. Payments are made monthly by direct debit over the agreed term¹. Within that structure, the Hanley offers two repayment bases: a Capital and Interest (Repayment) basis, where each monthly payment reduces the debt as well as paying the interest, and an Interest Only basis, where the monthly payments cover the interest alone and the original amount borrowed is repaid at the end of the term from a separate plan¹.

Interest-only borrowing is a significant decision. Because the monthly payment does not reduce the debt, you need a credible way to repay the full amount at the end, and lenders across the market scrutinise that repayment strategy before lending. Monmouthshire Building Society, for example, states it only offers an interest-only mortgage if it considers the repayment strategy acceptable, and names accepted strategies including an endowment policy, the sale of another UK property, a pension lump sum and cash savings⁶. Other societies offer both bases too: Coventry Building Society offers repayment and interest-only mortgages subject to its lending criteria⁷, and Bath Building Society offers capital repayment, interest only, and part-and-part mortgages, where some of the debt is repaid monthly and the rest at the end⁸. The general trade-offs between the two are explained in the mortgages guide.

Before completion, the Hanley discloses a document that highlights the key features and risks of the mortgage contract to the customer¹. This is the European Standardised Information Sheet, the standard pre-contract information document every UK mortgage lender must provide.

Self-build and new-build mortgages at the Hanley

Self-build and custom-build mortgages are the Hanley's specialist area. The Building Societies Association lists the Hanley among the building societies that provide finance for self-build and custom-build projects, alongside names such as Beverley, Chorley, Darlington, Dudley, Swansea, Earl Shilton, Vernon, Mansfield and Melton Mowbray building societies⁵. This kind of lending is structured differently from a standard purchase mortgage: money is typically released in stages as the build progresses rather than in one lump sum on completion.

How the payments work during the build varies between lenders. Chorley Building Society's self-build mortgage, for instance, permits interest-only payments during the build phase, then reverts the mortgage to a capital and interest repayment basis on the final release of funds or after three years, whichever is sooner⁹. If you are comparing self-build lenders, the payment structure during the build, the stage-release arrangements and the re-inspection requirements matter as much as the headline rate, and the Hanley publishes its own terms for these products.

All Hanley mortgage approvals are subject to the property having a mortgage valuation carried out on behalf of Hanley Intermediaries, and a fee may be payable depending on the mortgage product¹. On a self-build this valuation and any re-inspections are part of how the society monitors progress before releasing further funds.

For new-build properties, the Hanley accepts a defined list of structural warranties. These include Premier's "Guarantee for New Homes" (minimum warranty term 10 years), NHBC "Buildmark" (minimum 10 years), Self-Build Zone (minimum 10 years), LABC Warranty (minimum 10 years), an Architects Certificate (minimum 6 years), the BLP Allianz Guarantee (minimum 10 years), Castle 10 (Checkmate) (minimum 10 years) and Protek (minimum 10 years)¹. If you are buying or building a new property, checking early that the warranty provider and term will be acceptable avoids problems at the valuation stage.

Mortgage costs: how the charges work

The Hanley does not publish a single set of charges on this page, and its figures change with its products, so the place for today's numbers is its own website. What does not change is how the charges are structured.

Every mortgage comes with a "Tariff of mortgage charges", issued with the original mortgage, and the same costs are published on the Hanley's website¹⁰. That tariff is the reference document for what the society charges across the life of the loan, including the fees for the variations described later on this page. A mortgage valuation is required on every approval, and whether a fee is payable depends on the product¹.

Across the building society sector, product fees are usually established at the outset and can often either be paid up front or added to the mortgage amount, where they attract interest at the same rate as the rest of the borrowing¹¹. Adding a fee to the loan spreads the cost but makes it more expensive over the term, so the total cost over the years you expect to hold the mortgage is the figure that matters.

If a mortgage account falls into serious payment shortfall and no agreement has been reached with the lender, further costs may be incurred and applied to the account; Chorley Building Society, for example, sets out that it provides current charges to the borrower before legal action commences¹². The same principle of full disclosure of charges before they bite applies across the market.

One cost that catches many borrowers out is interim interest. The Hanley defines interim interest as the interest from the date of completion to the end of the month. The first payment falls due in the month following completion and includes that interim interest¹, so the first direct debit is larger than a normal monthly payment.

If you are remortgaging a property with a Help to Buy equity loan, be aware that the scheme's administrator charges a £115 admin fee on remortgage¹³. Legal costs are part of most remortgages too: some lenders, such as Suffolk Building Society, typically offer fee-assisted legal services on their remortgage deals¹⁴, while Chorley Building Society states that legal fees cannot be added to the mortgage¹⁵. Ask the Hanley which arrangement applies to its remortgage deals before you commit.

Who can get a Hanley mortgage and where the property must be

The Hanley only lends on properties in England, Wales and Scotland, with properties in the Scottish Islands considered on a referral basis only¹. A referral basis means each case is assessed individually rather than meeting a standard automated criteria, so if you are buying on a Scottish island it is worth speaking to the society before you commit to a purchase. Lending territories vary a great deal between smaller societies, so if the Hanley cannot lend on your property, another mutual may: this is one of the more variable parts of the building society market.

Hanley mortgages are secured against a residential property on a first charge basis¹, which means the society must be the first lender with a claim on the property. The purposes it lends for are purchasing, remortgaging, remortgaging including capital raising, and further funding for home improvements¹.

Every approval is subject to a mortgage valuation carried out on behalf of Hanley Intermediaries¹. The valuation is for the society's benefit, to confirm the property is worth what is being lent against it; it is not a survey of the property's condition, and buyers usually arrange their own survey on top.

On new builds, the warranty arrangements listed above apply: the society accepts specific warranties with minimum terms of 6 or 10 years depending on the provider¹. As with any mortgage lender, your income, outgoings and credit history will be assessed before a loan is agreed; the credit scores guide explains what lenders see and how to check your file first.

Changing your mortgage: variations and solicitors

Existing Hanley borrowers can ask to vary their mortgage contract, for example changing the term, changing the repayment type, obtaining consent to let, converting to a buy-to-let, or transferring equity. The society is not obliged to consent to varying the mortgage contract, but it states it will consider most applications on an individual basis against its lending criteria¹⁰. That means there is no automatic right to a variation: each request is assessed on its own facts, and a refusal is possible.

Fees are charged for variations, and the costs are published on the website or in the "Tariff of mortgage charges" issued with the original mortgage¹⁰. Because the tariff issued with your mortgage is the version that governs your loan, keep it with your mortgage documents: it is the reference for what any change will cost you.

For a transfer of equity with no additional borrowing, the solicitor you instruct must be on the society's approved panel, and the Hanley checks this as part of the application. The solicitor's fee itself is outside the society's influence, so it is agreed between you and the solicitor¹⁰. If you have a preferred solicitor, check they are on the panel before instructing them, or the application will be delayed.

If you are struggling with the mortgage rather than simply changing it, the Hanley's support options are covered under contacting the society below, and the debt guide sets out the free help available.

Overpayments, payment holidays and paying off early

The Hanley allows overpayments to be made by monthly standing order or in the form of a lump sum¹. Overpaying reduces the balance faster, which reduces the total interest paid over the term, though the effect depends on how your mortgage interest is calculated and whether any charge applies.

An early repayment charge is applied if a borrower redeems their mortgage before the end of their incentive interest rate period, on selected products. The charge is calculated as a percentage of the balance repaid¹. So if you have a fixed or discounted rate with an incentive period, paying off the mortgage or moving lender during that period can trigger a percentage-based charge, while products without an incentive period, or payments made after it ends, do not attract one. The exact percentage applying to your loan is in your mortgage offer and the tariff of charges.

This structure is common across the market. Chorley Building Society, for example, states that an early repayment charge may be payable if you repay your mortgage in full or make a lump sum overpayment, with details contained in the mortgage illustration, the offer document or the individual product guide¹². The lesson is the same everywhere: check your own offer document before making a large overpayment, because the charge can outweigh the interest saved.

Payment holidays are not permitted on Hanley mortgages¹. If you cannot make a payment, do not simply stop: contact the society, because lenders can often agree alternative arrangements, and missing payments without agreement leads to arrears charges and eventually to possession action. Banks and building societies are expected to have specialist teams that can offer additional support to customers who are struggling¹⁶, and the debt guide lists free, independent sources of help.

Insurance and mortgage advice at the Hanley

The Hanley states there are no compulsory insurances that have to be taken out through it, but buildings insurance must be in place prior to completion of the mortgage and during the term of the mortgage contract¹. In other words, you must insure the property, but you are free to buy that cover from any insurer. This is the standard position across the market: home insurance is not a legal requirement, but mortgage lenders commonly make buildings insurance a condition of the loan¹⁷, and Leeds Building Society, for example, states that having appropriate buildings insurance is a condition of its mortgages¹⁸. Which? notes that most mortgage lenders require you to hold buildings insurance¹⁹, generally from the date of exchange²⁰.

Because you can shop around, it is worth doing so: Independent Age advises comparing quotes rather than accepting the first or the lender's own offer²¹, and Which? sets out the questions worth asking before choosing a home insurance policy, such as what the policy covers and excludes²⁰. Buildings cover protects the structure, not your possessions, so contents insurance is a separate decision.

The Hanley advertises free mortgage advice on its standard residential mortgages²², and it offers Saturday and evening appointments for customers who cannot speak during working hours²². Advice on the Hanley's own products comes with the usual caveat that it covers the society's range; the mortgages guide explains the difference between advice tied to one lender and whole-of-market advice, and the insurance guide covers how to buy home insurance.

One insurance term worth understanding is subrogation. The Hanley's own explanation is that once a company has made a payment for a financial loss for which someone other than the policyholder is responsible, it may have the right to recover the loss from that party¹. In practice this means that if an insurer pays out for damage someone else caused, the insurer may pursue that person for the money.

Contacting the Hanley and making a complaint

The Hanley can be contacted in person at a branch, by calling, or by email²³. Its website, www.thehanley.co.uk, carries the current phone numbers, branch details and opening times³. For customers who cannot get to a branch or take calls in the working day, the society advertises Saturday and evening appointments²².

If something has gone wrong, complain to the Hanley first. You can do this in person at a branch, by calling, or by emailing the society²³. The society will investigate and send you a written response. If you are unhappy with that response, you can refer the complaint to the Financial Ombudsman Service, which provides a free, independent review²⁴. The ombudsman's own consumer material explains that it can provide information in Easy Read, large print, braille or audio, in another language, or through a family member, friend or someone else speaking on your behalf²⁴. Firms are also expected to offer customers with sight impairments large print or braille bills and information where appropriate²⁵, so tell the Hanley if you need a complaints notice in an accessible format.

If you are worried about money, or about someone else's finances, banks and building societies should have a specialist team able to offer customers additional support¹⁶. Some lenders operate dedicated support lines: Leeds Building Society runs a Specialist Customer Support Team through its main contact centre, and Skipton Building Society has an Additional Support Team²⁶. Asking to be passed to a support or specialist team is a reasonable request to make of the Hanley too. The consumer protection guide explains your rights when things go wrong with a financial firm, and the scams and fraud guide covers what to do if you suspect a scam.

How your savings with the Hanley are protected

Eligible deposits with Hanley Economic Building Society are protected up to a total of £120,000 by the Financial Services Compensation Scheme². The FSCS is the UK's statutory deposit protection scheme: if a bank or building society fails, eligible depositors are compensated up to that limit per person across all the accounts they hold with that society. The £120,000 figure is the society's own stated limit for its depositors².

Because the limit applies per person across all the accounts they hold with one institution, the practical point is simple: if you hold more than £120,000 with the Hanley, the excess is not protected, and spreading money between separate institutions keeps each balance within the limit. The savings guide explains how the FSCS limit works in practice, and the FSCS itself publishes the current rules.

Deposits are not the only thing protected. As a customer of a regulated firm, you also have access to the Financial Ombudsman Service for complaints²⁴, and the society's status and permissions can be checked on the FCA Register³. The regulation guide explains who regulates what in UK financial services and what it means for you as a customer.