CHL Mortgages cuts five-year fixed rates

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CHL Mortgages has reduced rates across its whole five-year fixed range with rates now starting from 5.94%.

The lender has also expanded the fee options available to landlords, with a newly introduced 7% fee option available up to 70% LTV. A 5% fee option also remains available up to 70% LTV, whilst the 2% and 3% fee alternatives are available up to 75% LTV.

In the Core product range Individual and Limited Company/LLP rates now start from 5.94%, HMO/MUFB rates from 5.99% and short-term lets products from 6.49%. Products in the refurbishment range now start from 5.99%.

All five-year fixed rate products are calculated at ICR pay rate. For applications which include a combination of additional-rate/higher-rate/basic-rate payers, the lender will also consider a ‘blended ICR’ approach to determine loan affordability based on each borrower’s tax status and their personal share of ownership/rent to help maximise ICR affordability for its landlord clients.

Details are as follows:

Five-year fixed with 7% fee option – 70% LTV:

• 5.94% – Individual and Limited Company/LLP
• 5.99% – Small HMO/MUFB
• 6.04% – Large HMO/MUFB
• 5.99% – Light Refurbishment (Individual and Limited Company/LLP)
• 6.04% – Light Refurbishment (Small HMO/MUFB)

Five-year fixed with 5% fee option – 70% LTV:

• 6.44% – Individual and Limited Company/LLP
• 6.49% – Small HMO/MUFB
• 6.54% – Large HMO/MUFB
• 6.49% – Short Term Lets
• 6.49% – Light Refurbishment (Individual and Limited Company/LLP)
• 6.54% – Light Refurbishment (Small HMO/MUFB)

Five-year fixed with 3% fee option – 75% LTV:

• 6.93% – Individual and Limited Company
• 6.98% – Small HMO
• 7.03% – Large HMO
• 6.98% – Short Term Lets

Five-year fixed with 2% fee option – 75% LTV:

• 7.19% – Individual and Limited Company/LLP
• 7.24% – Small HMO/MUFB
• 7.29% – Large HMO/MUFB
• 7.24% – Short Term Lets
• 7.29% – Cosmetic Improvement (Individual and Limited Company/LLP)
• 7.34% – Cosmetic Improvement (Small HMO/MUFB)
• 7.24% – EPC Improvement (Individual and Limited Company/LLP)
• 7.29% – EPC Improvement (Small HMO/MUFB)
• 7.29% – Light Refurbishment (Individual and Limited Company/LLP)
• 7.34% – Light Refurbishment (Small HMO/MUFB)

Ross Turrell, commercial director at CHL Mortgages, said: “We have started to see a stabilisation in the money markets recently, which has enabled us to reduce our rates. Additionally, we have taken the opportunity to implement a number of different fee options, which alongside our broad criteria and underwriting experience further supports our intermediaries and their clients’ needs.”