West One and CHL unveil changes to BTL ranges

West One and CHL Mortgages have enhanced their BTL product offerings.

West One

West One’s BTL division has reduced prices on selected ranges and introduced a new product.

The limited edition five-year fixed, payrate rental calculation product has been added to the lender’s standard W1 range and offers loans up to £750,000 at 75% LTV, 3.34% interest rate and a 2% fee.

The existing 80% LTV products on the W1 standard range have an increased maximum loan size of £750,000 (up from £250,000) and are now available on both purchase and remortgage cases. 

The product fee can be added to the loan, with rates starting from 4.04% and a 1.5% fee.

West One is also lowering its pricing on selected W1 range specialist products for HMO and MUFB properties by up to 10 basis points.

Rates for these products start from 3.54% with a 1.5% fee.

The business recently increased its HMO size to a maximum of 10 bedrooms, with MUFB properties also available at up to 10 units.

Following West One’s re-entry into the short-term let and expat market earlier in the year, its maximum loan size has been upped to £750,000 (from £500,000) on this offering.

However, the limited edition product range (available at 3.44% on a five-year fixed-rate term) is now withdrawn to new business.

The BTL division has also set out a number of criteria changes, effective from today (17th May).

The maximum loan size has been boosted on core standard and specialist W1 product ranges to £1.5m on all LTV bandings up to 75% LTV (up from £1m at 70-75% LTV); maximum loan sizes remain unchanged on the W2 product ranges.

In addition, flats above commercial premises can now be considered at up to 75% LTV, as well as applicants who own unencumbered properties where no mortgage history is available.

Andrew Ferguson, managing director at West One’s BTL division, said: “We’re really pleased to introduce these exciting product and criteria changes today which will offer more choice to brokers and their clients, while broadening our proposition. 

“We regularly discuss criteria with key broker contacts and these changes are as a result of us listening to what they want. 

“This year, the BTL market has really taken off, partly due to the shifting living patterns we’ve seen as a result of the coronavirus and ensuing lockdowns.”

CHL Mortgages

CHL Mortgages has launched its new BTL product range with a limited group of directly authorised brokers and selected packager partners as part of its phased return to the market.

The offering includes five-year fixed-rate BTL 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 payrate and are applicable for purchase or remortgage purposes. 

Each BTL product has a minimum loan size of £25,001 and a maximum of £1m.

The full range will be accessible to individual and portfolio landlords and limited companies for a variety of types of properties, including HMOs, MUFBs, new-build, ex-local authority and properties above or adjacent to commercial. 

Minor adverse will also be considered, as well as first-time landlords on certain products.

The new products are being offered through Mortgage for Business, 3mc and Master Private Finance.

“This marks the beginning of an exciting new era for CHL Mortgages,” said Ross Turrell, commercial director at CHL Mortgages.

“They form part of a carefully planned return to the specialist BTL market and come on the back of assembling experienced sales and underwriting teams while 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.”

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