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.
Advance notice of CHL Mortgages Expanding it’s Product and Criteria
It gives me a great pleasure in giving you advance notification about our exciting new product and criteria which go live on Monday 11th April.
Summary of changes
Larger HMOs
- All types of HMO will be acceptable including licenced, C4 planning use, Sui Generis planning use, as well as properties requiring considerable alternation to sell as a family home
- At least one applicant must be able to evidence they currently own, and have owned for at least 2 years, a minimum of one BTL property
- Maximum of 10 bedrooms
- No limit on the number of lettable rooms
- Maximum LTV of 75%
- Minimum property value of £150k for properties located within the M25, £100k elsewhere
Larger MUFBs
- At least one applicant must be able to evidence they currently own, and have owned for at least 2 years, a minimum of one BTL property
- Maximum of 10 units in the block
- All units must have separate services
- Maximum LTV of 75%
- Minimum property value of £150,000 forproperties located within the M25, £100,000 elsewhere
Short Term Lets
Properties let as an AirBnb, holiday let or serviced apartment are acceptable providing the valuer confirms
- The security property is suitable for occupation under an AST;
- The ICR calculation fits on the market rent based on an AST; and
- There is demand for the property from both owner occupier and investor buyers
Limited Company Lending
- Now available to LLPs
Our Addition Of Large HMOS / MUFB To Our Product Range
CHL Mortgages launches new large HMO and MUFB range
CHL Mortgages, the intermediary-only specialist buy-to-let lender, further expands its product suite and criteria by launching a new product range for large Houses in Multiple Occupation (HMO) and Multi-Unit Freehold Blocks (MUFB), designed to cater for properties with 7 to 10 bedroom/units, so moving the lender further into the complex multi-unit/tenanted buy-to-let market.
This move follows the recent launch of the specialist lender’s 7-year fixed rate product range and is in addition to the lenders existing HMO & MUFB range which allows up to 6 bedrooms/units.
The new larger HMO/MUFB product range is available up to 75% LTV with a headline rate of 3.35% fixed for five-years with a 2.5% fee with an alternate option of 3.60% with a 1.25% fee.
For HMOs, CHL Mortgages allow a maximum of 10 bedrooms with no limit on the number of lettable rooms. All types of HMO will be acceptable including licenced, C4 planning use, Sui Generis planning use as well as properties requiring alteration to sell as a family home.
For MUFBs, a maximum of 10 units in the block are allowed under the new product range, providing all units have separate services.
In relation to both HMOs and MUFBs, at least one applicant must be able to evidence that they currently own and have owned a Buy-to-let property for a minimum of two years.