Editor's note: This brief was summarised by The Property AI Team from a report by Mortgage Strategy. Read the original article for full details.
CHL Mortgages Unveils Light Refurbishment Mortgage Range
CHL Mortgages has launched a new light refurbishment mortgage range, offering fixed rate products for both individual and limited company landlords. The range includes options for single dwelling properties as well as houses in multiple occupation (HMOs) and multi-unit freehold blocks (MUFBs) with up to six bedrooms or units.
Two-year fixed rates in the new range start from 4.40% for single dwelling properties and 4.50% for HMOs and MUFBs. Five-year fixed rates start from 6.11% for single dwellings and 6.21% for HMOs and MUFBs. All products are available up to 75% loan-to-value (LTV) and come with a choice of product fee options.
The new range is designed for landlords looking to carry out improvements such as installing new bathrooms or kitchens, replacing fixtures and fittings, windows and doors, roof coverings, full rewiring, or converting a C3 dwelling to a C4 HMO property. The initial mortgage advance is based on pre-works rental and market valuation figures, with a retention held based on the difference between pre- and post-works values.
Once the refurbishment works are completed, a reinspection is carried out to confirm the post-works rental and market value figures. Following approval from the reinspection, the retention funds are released to the borrower.
This product may be of interest to letting agents and inventory clerks working with landlords planning non-structural upgrades or modernisation projects prior to letting out properties.
Source: Mortgage Strategy