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 with an alternate option of 3.60% with a 1.25% fee
Intermediary-only specialist buy-to-let lender, CHL Mortgages, has moved further into complex multi-unit/tenanted buy-to-let lending with the launch of a new product range of large HMOs and MUFBs.
According to CHL, the new products are designed to cater for properties with 7 to 10 bedroom/units, follows the recent launch of their 7-year fixed rate product range. The new range is in addition to the lender’s existing HMO & MUFB range which allows up to 6 bedrooms/units.
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 with an alternate option of 3.60% with a 1.25% fee.
For HMOs, CHL Mortgages allow a maximum of 10 bedrooms with no limit on the number of lettable rooms. All types of HMO will be acceptable including licensed, 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.
Ross Turrell, Commercial Director, CHL Mortgages commented: 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.
He said: 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/MUFB properties.
The post CHL launches new product range of large HMOs and MUFBs first appeared on Invest for Property London, Buy Residential property UK.
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