Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Strategy. Read the original article for full details.
CHL Mortgages Expands Bridging Finance Criteria and Introduces AVMs
CHL Mortgages has enhanced its bridging finance offering by widening the range of acceptable adverse credit histories and introducing automated valuation models (AVMs) for eligible properties.
The specialist lender, which launched its regulated and non-regulated bridging proposition earlier this month, will now consider applications involving unsatisfied county court judgments (CCJs), unsatisfied debts, and unsatisfied secured and unsecured arrears, subject to underwriter review. This change is intended to support a broader range of applicants, including those with complex credit backgrounds.
The introduction of AVMs allows for eligible properties to be valued without a physical inspection, streamlining the application process and enabling cases to progress more quickly. This could be particularly relevant for letting agents and inventory clerks managing time-sensitive transactions.
CHL Mortgages’ new bridging range includes products for scenarios such as chain break finance, auction purchases, light refurbishment (non-structural projects including internal upgrades), and heavy refurbishment (larger-scale projects involving structural works). Rates start from 0.70% per month up to 75% loan-to-value (LTV), with loan amounts available from £100,000 to £10 million. All products in the range feature no exit fees or early repayment charges (ERCs).
Currently, these products are available to directly authorised brokers through selected mortgage clubs and CHL Mortgages’ bridging packager panel. The lender plans to expand distribution channels over time.
Source: Mortgage Strategy