Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Solutions. Read the original article for full details.

CHL Mortgages Expands Bridging Loans for Borrowers with Adverse Credit

CHL Mortgages has expanded its bridging loan proposition to cater to borrowers with a wider range of adverse credit histories. The lender has also introduced automated valuation models (AVMs) for eligible properties, potentially removing the need for physical valuations.

Applications to CHL Mortgages can now include cases with unsatisfied county court judgments (CCJs), debts, and both secured and unsecured arrears, subject to underwriter assessment. The expanded product range offers rates starting at 0.7% per month, with borrowing amounts from £100,000 up to £10 million and up to 75% loan-to-value (LTV). There are no exit fees or early repayment charges on these products.

The bridging range now covers finance for chain breaks, auction purchases, light refurbishment projects (such as non-structural internal upgrades), and heavy refurbishment projects involving structural works. AVMs are available on eligible properties, which may streamline the application process for some borrowers.

These products are accessible to directly authorised (DA) brokers through selected mortgage clubs and CHL Mortgages’ bridging packager panel. The lender has indicated that additional distribution routes will be introduced over time as it continues to expand its offering.

For letting agents and inventory clerks, these changes may provide more options for clients with complex credit backgrounds or those seeking quick access to funding for property transactions and refurbishments.