According to the lender, the new range includes five-year fixed rate buy-to-let products which are available at a rate of 3.25% up to 75% LTV and 3.10% up to 65% LTV. Rental income for these products must be at least 125% of the monthly mortgage payment calculated at pay rate and they are applicable for purchase or remortgage purposes. Each BTL product has a minimum loan size of £25,001 and a maximum loan size of £1m.
The full product range will be accessible to individual landlords, portfolio landlords and limited companies. The range includes options to cover a range of property types including HMOs, MUFBs, new build, ex-local authority and properties above/adjacent to commercial. Minor adverse can also be considered, as well as first-time landlords on certain products.
As part of this phased return to the market, the products are currently being offered through a select group of distribution partners - Mortgages for Business, 3mc and Master Private Finance.
Ross Turrell, commercial director, CHL Mortgages commented: “The launch of these products marks the beginning of an exciting new era for CHL Mortgages. These form part of a carefully planned return to the specialist BTL market and come on the back of assembling experienced sales and underwriting teams whilst undertaking a rigorous period of testing to ensure our technology platform meets our customer needs.
“It’s vital that we carefully manage our return to lending and ensure that we start as we mean to go on when it comes to establishing the highest service standards, competitive pricing and broad-ranging criteria. However, the intermediary market can certainly expect some further developments in the coming weeks.”
Gavin Richardson, chief operating officer, Mortgages for Business, said: “Mortgages for Business are delighted that the experienced team at CHL Mortgages are returning to the buy-to-let space, and as a specialist buy-to-let broker of more than 30 years, we’re thrilled to be part of their select panel. Here at Mortgages for Business, our award-winning brokers know that there’s no one-size-fits-all when it comes to property finance. We work closely with expert buy-to-let lenders, like CHL Mortgages, to tailor mortgage solutions that fit our clients’ individual needs.”
Doug Hall, director of distributor at 3mc, adds: “These rank as competitive products and I’m sure they will prove attractive options for a range of landlords and investors. It’s a huge positive for the BTL sector to see the return of such an iconic lender as CHL Mortgages and we look forward to being involved in their ambitious growth plans at such as early stage in their development.”
Vincent Burch, Managing Director at Master Private Finance, said: “We are excited to be selected as an early-adopter packaging partner for the return to market of a respected and experienced player that is CHL Mortgages. Master Private Finance prides itself on finding the best possible solution for our clients and are delighted to be accompanying CHL Mortgages on this journey."
