CHL Mortgages adds new LTV bands and reduces rates across BTL product range

CHL Mortgages, the intermediary-only specialist buy-to-let lender, has introduced a raft of products across 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% on the lenders’ five-year fixed rate buy-to-let product range (up to 50% LTV) and from 2.85% up to 75% LTV. Both are available on the individual and limited company offerings with product fees ranging from 1.25% to 2%.

A 2.93% two-year fixed rate at 60% LTV and a 2.99% two-year fixed rate at 70% LTV have been introduced to replace the previous two-year 65% and 75% LTV BTL products. Both are available for individual and limited company ranges, with a 2% 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% at 50% LTV and from 3.15% up to 75% LTV. This range also includes a 0% product fee option at 65% and 75% LTV for 2-year fixed products.

Full details of the changes are as follows:

Individuals & Limited Companies

Up to 50% LTV:

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

Up to 60% LTV:

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

Up to 65% LTV:

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

Up to 70% LTV:

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

Up to 75% LTV:

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

HMO/MUFB

Up to 50% LTV:

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

Up to 60% LTV:

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

Up to 65% LTV:

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

Up to 70% LTV:

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

Up to 75% LTV:

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

All five-year products are calculated at ICR payrate, including HMO/MUFB and early repayment charges are 3/2% on two-year fixed rates and 5/4/3/2/1% on five-year fixed rates. Rental income for these products starts from 125% 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.”