CHL Mortgages has updated its product and criteria, the details are below. These products are available through our direct to lender mortgage club so contact us for more information on how our club can support your business.
Launch of Light Refurbishment Buy To Let product range, with NO Bridging element
I am pleased to announce that CHL Mortgages is introducing a buy-to-let refurbishment product range, which is designed to help landlords improve the energy rating of their rental stock and/or improve the general condition of the property. The products offer the ability to release the costs of the refurbishment upon completion, without having to change product.
The refurbishment product range consists of three products: Light Refurbishment, Cosmetic Improvement and EPC Improvement. The first two products are designed to increase the future asset/rental value of the property, with the latter a Green Mortgage option which is specifically designed to improve the energy efficiency of the property.
The range is available to individuals and limited companies and is applicable on standard buy-to-let properties, small houses in multiple occupation (HMO) and small multi-unit freehold blocks (MUFBs) with five-year fixed rates starting from 4.41%. Lending will be calculated on the pre-works value with a retention held based upon the post-works estimated valuation.
The product range has a maximum 75% loan-to-value (pre and post works, which means landlords can release more if the value of the property has increased post works) and the maximum cost of work must not exceed 25% of the pre-work property value.
- Cosmetic Improvement – designed for improvement works to improve the cosmetic appearance of a property, such as painting & decorating, replacement flooring, replacement fixtures and fittings
- EPC Improvement – designed for non-structural and modernisation works which can be signed off under the Competent Person Scheme without the need for building control sign off, with a requirement the collective works must improve the EPC rating of the property to a C or above
- Light Refurbishment – designed for non-structural and modernisation works which can be signed off under the Competent Person Scheme without the need for building control sign off
The new product and criteria guides introducing the new product range are attached.