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 Launches Light Refurbishment Buy-to-Let Range

CHL Mortgages has introduced a new light refurbishment range to its buy-to-let (BTL) mortgage offering. The products are designed for landlords and investors looking to carry out non-structural or modernisation works on their properties.

The new range features two-year fixed rates starting from 4.40% for single dwelling properties and 4.50% for houses in multiple occupation (HMO) and multi-unit freehold block (MUFB) properties with up to six bedrooms or units. Five-year fixed rates start from 6.11% for single dwellings and 6.21% for HMO and MUFB properties with up to six bedrooms or units.

The products are available to both individual and limited company landlords, with loans available up to 75% loan to value (LTV) and a choice of product fee options. The range is aimed at those seeking to fund the purchase and refurbishment of a property through a single BTL term mortgage, rather than using a bridging loan followed by a long-term BTL product.

The initial advance is based on the rental and market valuation figures prior to the refurbishment works. A retention is held based on the difference between the pre- and post-work values. Once the borrower confirms completion of the works, a reinspection is carried out to confirm the actual post-works rental and market value figures. Upon approval, the retention funds are released. This process eliminates the need for two sets of legal fees.

Improvements covered by the range include installing a new bathroom or kitchen, replacing fixtures and fittings, windows and doors, roof coverings, undertaking a full rewiring, or converting a C3 dwelling to a C4 HMO property.

This new offering provides an alternative to traditional borrowing methods for landlords and may be of interest to letting agents and inventory clerks working with clients planning property upgrades or conversions.