Landbay and CHL cut BTL rates

Landbay and CHL Mortgages have reduced rates across their BTL ranges.


Landbay has trimmed the rates on its large HMO and MUFB products by up to 0.2 percentage points.

For the two-year fixed-rate large HMO suite, prices start from 3.69% at 70% LTV and 3.79% at 75% LTV, while the large HMO five-year fixed-rate products are available at 3.89% at 70% LTV and 3.99% at 75% LTV.

Meanwhile, the large MUFB offering has rates of 3.69% and 3.79% at 70% and 75% LTV respectively, both on a two-year fixed term.

The lender has also lowered rates for its five-year fixed-rate large MUFB suite, which is now at 3.89% at 70% LTV and 3.99% at 75% LTV.

Landbay’s criteria for large HMOs is from seven to 12 bedrooms, and large MUFBs is seven to 12 units.

“Demand for HMO and MUFB finance has been picking up over the past couple of years as experienced landlords build up and diversify their portfolios,” said Paul Brett, managing director for intermediaries at Landbay.

“These types of property are proving more attractive to landlords as they generate a higher yield than a single dwelling. 

“This is being fuelled by high demand for shared housing and rented property.”

CHL Mortgages

CHL Mortgages has dropped its rates across its entire 65% LTV product offering by up to 25bps, following its return to lending.

Rates now start from 2.99% on the finance provider’s five-year fixed-rate BTL range, and from 3.04% on its two-year fixed-rate BTL suite for both individual and limited company offerings. 

Highlights also include a five-year fixed-rate 65% LTV limited company BTL offering at a rate of 3.19% with a 1.25% fee, and a two-year fixed-rate HMO/MUFB product which is available up to 65% LTV at a rate of 3.20%.

All five-year products are at pay rate, including HMO/MUFB, with fees across the range starting from 1%. 

Rental income for these products starts from 125% of the monthly mortgage payment calculated at pay rate, 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 product range caters for first-time landlords, portfolio landlords and limited companies, covering a variety of BTL investment vehicles including HMOs, MUFBs, new-build, ex-local authority, and commercial properties. 

Minor adverse will also be considered.

Ross Turrell, commercial director at CHL Mortgages, commented: “We have introduced these rate reductions on the back of an extremely positive market reaction and ongoing feedback from our expanding distribution panel

“The quality of the business we have received so far has been excellent and our processing team has coped admirably during our initial launch phase. 

“This combination has provided additional confidence and conviction to create further capacity which will allow us to write even more business. 

“The BTL market remains an extremely competitive lending arena, especially at the 65% LTV level, and the revamping of our product range will ensure that an increasing number of intermediaries will be able to tap into the type of products and service values which will make a real difference for their landlord clientele.” 

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