CHL Mortgages, a specialist in the buy-to-let sector, has recently revamped its offerings, which are now categorized into two main ranges: CHL 1 and CHL 2. This restructuring aims to provide more tailored options to different types of clients.

The CHL 1 Range: For Those with Clean Credit

The CHL 1 range is primarily designed for customers with a clear credit history. It combines what used to be individual and limited company ranges into a standard buy-to-let range.

• Key Offer: The headline feature in this range is a 3.65% two-year fixed rate for loans up to 65% loan-to-value (LTV).
• Other Options: Additionally, two-year fixed rates start at 3.72% up to 70% LTV, and at 4.90% up to 75% LTV. For those looking for longer-term stability, five-year fixed rates begin at 5.10% (up to 65% LTV), 5.14% (up to 70% LTV), and 5.20% (up to 75% LTV).
• Product Fees: These vary, with options at 2%, 5%, and 7%.

The CHL 2 Range: Flexibility for Complex Cases

CHL 2 is crafted for a broader client base, especially those dealing with more complex property types or who have less than perfect credit histories.

• Diverse Offerings: This range includes standard buy-to-let, small and large HMO/MUFB, short-term lets, and a refurbishment range catering to cosmetic improvements, EPC improvements, and light refurbishments.
• Rates and LTVs: The two-year fixed rate products start at 5.40% for up to 70% LTV and 6.42% for 75% LTV. The five-year fixed rates are slightly lower, starting at 5.27% for up to 70% LTV and 6.26% for 75% LTV.
• Product Fees: These are slightly more varied than in CHL 1, with options at 2%, 3%, 5%, and 7%.

Ross Turrell’s Insights

Ross Turrell, the commercial director at CHL Mortgages, highlights the reduction in pricing and the expanded product range as a significant move. He sees this as a way to provide more options to intermediary partners and their clients. Turrell’s optimism about the stabilizing buy-to-let market in a recovering economy underlines the potential opportunities for landlords.

What This Means for Potential Investors

The changes introduced by CHL Mortgages reflect a growing and diversifying buy-to-let market. With options catering to those with a strong credit history and those facing complex investment scenarios, CHL’s ranges offer something for various investor profiles.

• For the Cautious Investor: The CHL 1 range, with its competitive rates and options for longer-term fixed rates, is ideal for investors seeking stability and predictability in their returns.
• For the Versatile Investor: The CHL 2 range suits those looking to invest in properties that might not fit the standard mold, offering flexibility and a broader scope of investment opportunities.