CHL Mortgages

CHL launches large HMO and MUFB product range



798_2022-05-03-11-01-31am.gif
CHL Mortgages has launched a new product range for large HMOs and MUFBs, designed to cater for properties with seven to 10 bedroom/units.

The new five-year fixed-rate products are available at up to 75% LTV, priced at 3.35% with a 2.5% fee, or 3.60% with a 1.25% fee.

For HMOs, CHL accepts all types of properties — including licenced, C4 planning use, sui generis planning use and HMOs requiring alterations to sell as family homes — and allows a maximum of 10 bedrooms with no limit on the number of lettable rooms.

Meanwhile for MUFBs, a maximum of 10 units in the block are allowed under the new product range, providing all units have separate services.

All the new products require at least one applicant to evidence that they currently own and have had a BTL property for a minimum of two years.

Ross Turrell, commercial director at CHL Mortgages (pictured above), said: “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. 

“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 and MUFB properties.

“We have designed the product range to fill this gap and provide our intermediary partners with competitive alternatives to meet increasing demand for these property types which continue to generate high yields and meet ever-shifting landlord and tenant needs.”

This follows the launch of CHL’s seven-year fixed-rate BTL product range.

Leave a comment