CHL Mortgages launches short-term let proposition
CHL Mortgages, the intermediary-only specialist buy-to-let lender, has entered the short-term let marketplace with the introduction of a new five-year fixed rate product range, up to 75% LTV.
CHL Mortgages five-year 65% LTV short-term let products come with two fee options to help provide landlords with greater control over upfront costs. The rate of 3.50% has a 2.5% fee, and 3.80% a 1% fee.
The lenders five-year fixed rate 75% LTV short-term let products also come with two fee options. Rates start from 3.75% with a 2% fee and 3.95% with a 1% fee.
The lender will consider properties to be let as an Airbnb, holiday let or serviced apartment providing the valuer confirms that:
- The security property is suitable for occupation under an AST;
- The ICR calculation fits on the market rent based on an AST; and
- There is demand for the property from both owner occupier and investor buyers
The launch of the short-term let proposition follows the introduction of a new product range for large HMOs and multi-unit freehold blocks (MUFBs), designed to cater for properties with 7 to 10 bedroom/units. The full CHL Mortgages product range caters for first-time landlords, portfolio landlords and limited companies covering a variety of BTL investments including HMOs, MUFBs etc.
Ross Turrell, Commercial Director, CHL Mortgages commented: “As a specialist BTL lender we adapt to shifts in landlord demand and integrate broker feedback to help shape our proposition. We will continue to evolve in line with these important influencing factors.
“When entering any new product area, it’s vital to do so from a solid lending platform. Q1 has proved an exceptional start to the year for us and we feel that adding a highly competitive range of short-term let products will deliver further options and opportunities for our intermediary partners to better service the ever-changing needs of landlord clients who are looking to diversify portfolios and maximise yields.
“Short-term letting is an area which will continue to grow in prominence as the demand for ‘staycations’ increases and this is certainly a sector which intermediaries should be closely monitoring going forward.”