CHL Mortgages returns to buy to let with three distributors

CHL Mortgages returns to buy to let with three distributors
Credit: Joe Giddens/PA Wire

CHL Mortgages has begun its phased return to lending with the launch of a buy-to-let product range via three distribution partners.

The intermediary-only lender’s products are currently being offered through Mortgages for Business, 3mc and Master Private Finance.

The range includes five-year fixed rate products available at rates of 3.25 per cent up to 75 per cent LTV and 3.10 per cent up to 65 per cent LTV. They are available for purchase and remortgage.

Ross Turrell, commercial director at CHL Mortgages, said: “The launch of these products marks the beginning of an exciting new era for CHL Mortgages.

"These form part of a carefully planned return to the specialist BTL market and come on the back of assembling experienced sales and underwriting teams whilst 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.”

Rental income for these products must be at least 125 per cent of the monthly mortgage payment calculated at pay rate.

The products will be accessible to individual landlords, portfolio landlords and limited companies, and include options for properties such as houses in multiple occupation, multi-unit freehold blocks, new-build, ex-local authority and properties above or adjacent to commercial premises.

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

Doug Hall, director of distributor at 3mc, commented: “These rank as competitive products and I’m sure they will prove attractive options for a range of landlords and investors.

“It’s a huge positive for the BTL sector to see the return of such an iconic lender as CHL Mortgages and we look forward to being involved in their ambitious growth plans at such an early stage in their development.”

CHL Mortgages withdrew from new lending in 2008 when it focused on managing its own and third-party loan books.

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