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CHL Mortgages Adds LTV Bands and Reduces Rates across BTL Range

CHL Mortgages, the intermediary-only specialist buy-to-let lender, has introduced a raft of productacross new LTV bands, reduced rates on existing deals and introduced some new two-year fixed rate options for landlords.

Rates now start from 2.69 per cent on the lenders’ five-year fixed rate buy-to-let product range (up to 50 per cent LTVand from 2.85 per cent up to 75 per cent LTV. Both are available on the individual and limited company offerings with product fees ranging from 1.25 per cent to 2 per cent. 

A 2.93 per cent two-year fixed rate at 60 per cent LTV and a 2.99 per cent two-year fixed rate at 70 per cent LTV have been introduced to replace the previous two-year 65 per cent and 75 per cent LTV BTL products. Both are available for individual and limited company ranges, with a 2 per cent product fee.

The lenders’ HMO/MUFB range has also seen the introduction of several new products as well as rate reductions across existing LTV bands. Five-year fixed rates start from 2.94 per cent at 50 per cent LTV and from 3.15 per cent up to 75 per cent LTV. This range also includes a 0 per cent product fee option at 65 per cent and 75 per cent LTV for 2-year fixed products.

Full details of the changes are as follows:

Individuals & Limited Companies

Up to 50 per cent LTV

  • New – 2.69 per cent five-year fixed with a 2 per cent product fee

Up to 60 per cent LTV:

  • New – 2.75 per cent five-year fixed with a 2 per cent product fee
  • New – 2.93 per cent two-year fixed with a 2 per cent product fee

Up to 65 per cent LTV:

  • 2.80 per cent five-year fixed with a 2 per cent product fee (rate reduced by 0.08 per cent)

Up to 70 per cent LTV:

  • New – 2.83 per cent five-year fixed with a 2 per cent product fee 
  • New – 2.99 per cent two-year fixed with a 2 per cent product fee

Up to 75 per cent LTV:

  • 2.85 per cent five-year fixed with a 2 per cent product fee (rate reduced by 0.13 per cent)
  • 3.00 per cent five-year fixed with a 1.25 per cent product fee (rate reduced by 0.18 per cent – previous product fee of 1 per cent)

HMO/MUFB

Up to 50 per cent LTV

  • New – 2.94 per cent five-year fixed with a 2 per cent product fee

Up to 60 per cent LTV:

  • New – 3.04 per cent five-year fixed with a 2 per cent product fee

Up to 65 per cent LTV:

  • 3.09 per cent five-year fixed with a 2 per cent product fee (rate reduced by 0.20 per cent)
  • 3.29 per cent five-year fixed with a 1 per cent product fee (rate reduced by 0.20 per cent)
  • 4.10 per cent two-year fixed with a 0 per cent product fee (previous rate of 2.99 per cent with a 2 per cent product fee)

Up to 70 per cent LTV:

  • New – 3.25 per cent five-year fixed with a 1.5 per cent product fee

Up to 75 per cent LTV:

  • 3.15 per cent five-year fixed with a 2 per cent product fee (rate reduced by 0.23 per cent)
  • 3.35 per cent five-year fixed with a 1 per cent product fee (rate reduced by 0.23 per cent)
  • 4.19 per cent two-year fixed with 0 per cent fee (previous rate of 3.08 per cent with a 2 per cent product fee)

All five-year products are calculated at ICR payrate, including HMO/MUFB and early repayment charges are 3/2 per cent on two-year fixed rates and 5/4/3/2/1 per cent on five-year fixed rates. Rental income for these products starts from 125 per cent of the monthly mortgage payment and they are applicable for purchase or re-mortgage purposes. 

The product range caters for first-time landlords, portfolio landlords and limited companies covering a variety of BTL investments including HMOs, MUFBs.

Ross Turrell, commercial director, CHL Mortgages commented: The specialist BTL marketplace continues to see sustained levels of interest and enquiries from investors, developers and landlords who are looking to take advantage of rising tenant demand and a highly competitive lending environment. Meaning lenders need to constantly evaluate their product offerings to meet their ever-shifting needs. We expect these positive changes to be welcomed by our growing distribution panel and these will attract even more business to bolster what has been a hugely encouraging first six months back in the specialist buy-to-let lending arena.” 

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