Specialist lender adds £295m portfolio to mortgage book

Specialist lender adds £295m portfolio to mortgage book


A Hampshire-based specialist lender has announced the addition of a £295 million buy-to-let portfolio to its existing mortgage book. 

CHL Mortgages called the addition a ‘significant deal’, as its assets under management now stand at £6.5 billion.


Irish Permanent International elected CHL as its preferred partner to manage the loan book.


The nature of the loan book – including its properties, borrowers and products – are said to be ‘complex’ and require ‘experience and flexibility’ to be managed successfully.


The portfolio’s borrowers are spread across more than 40 legal jurisdictions with securities in England, Wales, Ireland and Northern Ireland. Borrowers include high-net worth individuals, corporates and trusts.


Bob Young, managing director of CHL Mortgages, commenting on the addition, said that few other lenders would have been able to take the portfolio on.


“The complexity of this portfolio is high to say the least,” he said. “Although we were a ‘preferred option’ to manage this portfolio we nonetheless went through a rigorous process of due diligence and cost justification.”


For CHL the deal marks an increase of mortgages under management by nearly 5% during 2010 - showing confidence in them to manage mortgages on behalf of originators.


CHL plan to manage all aspects of the loan book including general administration, delinquent accounts and recoveries, leaning heavily on its infrastructure and footprint across the UK and Ireland.


Mr Young added: “Since the start of the credit crunch we have reduced arrears on our own portfolio significantly while managing our cost base downwards. The addition of nearly £300 million is a significant milestone proving that CHL has the know-how and vital experience in the buy-to-let sector in order to be able to manage this challenge successfully. 


“We are 100% confident that, even with the portfolio’s complexity, we have staff with the skills and experience to ensure this is managed successfully and that that all parties benefit from this new arrangement.”


By Shelley DeBere

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