CHL Mortgages, a specialist in the buy-to-let sector, has just introduced a fresh lineup of mortgage products designed specifically for landlords looking to invest in rental properties. These new offerings include a variety of fee options and loan-to-value (LTV) ratios, providing flexibility and low-rate options even as market conditions fluctuate.

Variety of Fee Options and LTV Ratios

The new products from CHL Mortgages come with several fee percentages, allowing potential investors to choose according to their financial strategies. The fee options available are 2%, 3.5%, 5%, and 7%. Additionally, the products are segmented by loan-to-value (LTV) bandings at 55%, 65%, 70%, and 75%, catering to different levels of upfront investment capacity.

Competitive Fixed Rate Options

For landlords considering fixed-rate options, CHL Mortgages offers competitive rates aimed at providing stability in a fluctuating market. The two-year fixed rates begin at 3.41% for standard buy-to-let properties. For Houses in Multiple Occupation (HMO) or Multi-Unit Freehold Blocks (MUFB), the starting rate is slightly higher at 3.43%.

Those looking for longer-term stability can opt for the five-year fixed products, starting at 4.76% for standard buy-to-let and 4.83% for HMO/MUFB properties.

How Loan Costs are Calculated

CHL Mortgages uses specific Income Coverage Ratio (ICR) calculations to determine loan affordability, which is crucial for ensuring that landlords can manage repayments effectively:

• For five-year fixed loans: The calculation is based on the actual pay rate of the loan.
• For two-year fixed loans: The higher amount between 5.5% and the pay rate plus 2% is used.

These ICR calculations are designed to assess the feasibility of loan repayments under different interest scenarios, providing a safety net for both the lender and the borrower.

A Word From the Commercial Director

Ross Turrell, the Commercial Director at CHL Mortgages, commented on the launch, stating: “Despite the recent increasing swap rates, we are still pleased to provide low rate options to landlords which is a useful solution to assist with cashflow.” His remarks highlight the company’s commitment to supporting landlords by offering products that help manage cash flow, even as the broader economic environment presents challenges.