Saturday, May 28, 2022
Finance

CHL launches new product range of large HMOs and MUFBs

Mortgages

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

Intermediary-only specialist buy-to-let lender, CHL Mortgages, has moved further into complex multi-unit/tenanted buy-to-let lending with the launch of a new product range of large HMOs and MUFBs.

According to CHL, the new products are designed to cater for properties with 7 to 10 bedroom/units, follows the recent launch of their 7-year fixed rate product range. The new range is in addition to the lender’s 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 licensed, 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.

Ross Turrell, Commercial Director, CHL Mortgages commented: HMOs and MUFBs provide more affordable housing options for many young people, including students. As living costs continue to rise, such properties are likely to grow in popularity over the course of 2022 and beyond.

He said: After undertaking extensive market analysis, and on the back of intermediary feedback, it soon became clear that there was a lack of choice in the market for borrowing on larger HMO/MUFB properties.

Important:

The articles are for information purposes only and Invest for Property shall not be held responsible for any errors, omissions or inaccuracies within it. Any rules or regulations mentioned within the website are those relevant at the time of publication and may not be the most up-to-date.

Invest for Property does not endorse any of the products or services that appear on it or are linked to it and are not liable for any action that you may take as a result of the content of this website, or losses or damage you may incur doing so.

There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.

Please remember that investments of any type may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.

Leave a Reply