Hanley Economic Building Society has designed a new mortgage product for self-build clients looking to construct a second home.

The “build for second home” mortgage is for properties to be used as holiday or weekend retreats or as homes for retirement. It does not apply for rental properties.

The product offers a 3.99 per cent two-year variable discount rate at 60 per cent loan to value, for borrowers with at least a 40% deposit. The maximum loan amount is £500,000 and product fee £998.

Stage releases in arrears will correspond with identifiable stages of the build.

The new offer follows Hanley’s introduction of a part-complete self-build product, which aimed to provide borrowing for projects already underway.

“Identifying and addressing niches in the self-build market is a real strength of the business,” said David Lownds, head of marketing and business development at Hanley.

“This particular product will work well for clients looking to self-build a property to be used for a holiday or weekend retreat or a long-term retirement home,” Lownds added.