BTL lender launches new large HMO and MUFB range
Buy-to-let lender CHL Mortgages has further expanded its product suite and criteria by launching a new product range for large Houses in Multiple Occupation (HMO) and Multi-Unit Freehold Blocks (MUFB).
This follows the recent launch of the specialist lender’s seven-year fixed rate product range and is in addition to the lenders existing HMO & MUFB range, which allows for up to six bedrooms/units.
Read more: CHL Mortgages introduces first 7-year fixes.
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, and an alternate option of 3.60% with a 1.25% fee.
For HMOs, CHL Mortgages allows a maximum of 10 bedrooms with no limit on the number of lettable rooms. All types of HMO will be acceptable including licenced, 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.
According to Ross Turrell, commercial director at CHL Mortgages, it became clear from extensive market analysis and intermediary feedback that there was a lack of choice in the market for borrowing on larger HMO/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,” Turrell said.
