Applicant Criteria
We lend to both Individuals and Limited companies /LLP’s Up to 4 individual applicants or Limited Company Directors and/or Shareholders or LLP Members.
- Up to 4 Limited Company Guarantors. Guarantors must include all Directors.
- Guarantors must together hold a minimum of 75% or more of the controlling share capital.
- Up to 4 LLP Guarantors which must include all designated members and those members with management rights as detailed in the LLP agreement.
Related words: Ltd Co, SPV, maximum applicants
0 in last 36 months accepted
By Referral Only:
Unsecured Arrears:
- Status 1 in 12 months (Max. 1 instance)
- Status 1 in 36 months (Max. 3 instances)
Secured Arrears:
- 0 in 12 months
- Status 1 in 36 months (Max. 1 instance)
Related words: Missed payments, adverse
Satisfactorily completed or discharged over 6 years.
Related words: Adverse, debt
0 in last 36 months
Related words: County court judgement, missed payments, adverse, outstanding debt
Status 0 in last 36 months.
Related words: Missed payments, adverse, arrears, payment plan, credit
0 in last 36 months
Related words: Adverse, debt, missed payments, arrears
Deposits from Inter-company / Director / Shareholder / Partner loans accepted.
Related words: Down payment, Limited Company, Ltd Co, Limited Liability Partnership, LLP
Available to both Individual and Limited Companies / LLP applicants.
Related words: Ltd Co, SPV, House in multiple occupation
Satisfactorily completed or discharged over 6 years.
Related words: Individual voluntary agreement, adverse, debt
Individuals – At least one applicant must have a minimum of 12 months as a current property owner. For HMO/MUFB properties at least one applicant must prove they have owned a minimum of 1 BTL property for 2 years.
LLPs are accepted.
Related words: Limited Liability Partnership, Limited Company, Ltd Co, SPV
85 at the end of the term.
Related words: Repayment, applicant age
No limit on number of properties/mortgages in BTL portfolio.
Related words: Unlimited properties, background properties
21 for primary applicant. (18 for secondary applicants).
Related words: age limit, how old
£20,000 per application
Related words: Salary, wage, combined
Available to both Individual and Limited Companies / LLP applicants.
Related words: Ltd Co, SPV, House in multiple occupation
New company incorporations are accepted.
Related words: Limited Company, Ltd Co, Limited Liability Partnership, new companies, start up
A personal guarantee must be provided by Limited Company Directors and/or Shareholders with 20% shareholding, and all designated members and members with management rights of an LLP.
Related words: Ltd Co, Limited Liability Partnership, LLP
Minimum landlord experience of 12 months.
Not accepted.
Related words:Repossessed, adverse, debt
UK resident for at least the last 3 years with permanent right to reside.
Related words: Foreign national, expat, citizenship
Acceptable SIC codes:
68100 | 68209 | 68320 | 68201
Related words: Limited Company, Ltd Co, Limited Liability Partnership, Standard Industrial Classification
Property related SPV accepted.
Related words: Limited Company, Ltd Co, Limited Liability Partnership, new companies, start up, special purpose vehicle
Trading companies are not currently accepted.
Related words: Limited Company, Ltd Co, Limited Liability Partnership, existing company, SPV
Credit History & Adverse
0 in last 36 months accepted
By Referral Only:
Unsecured Arrears:
- Status 1 in 12 months (Max. 1 instance)
- Status 1 in 36 months (Max. 3 instances)
Secured Arrears:
- 0 in 12 months
- Status 1 in 36 months (Max. 1 instance)
Related words: Missed payments, adverse
Satisfactorily completed or discharged over 6 years.
Related words: Adverse, debt
0 in last 36 months
Related words: County court judgement, missed payments, adverse, outstanding debt
The DIP credit search is a soft footprint and doesn’t show on the applicants credit report. The full application will show a hard footprint.
Related words: Decision in Principle, score, history, record
We carry out a credit search which will provide a score which indicates if we require further documents and would make up the overall risk band for an applicant.
Related words: DIP, evidence, footprint, history
Status 0 in last 36 months.
Related words: Missed payments, adverse, arrears, payment plan, credit
We do not apply a debt to income ratio, it is more common for residential mortgages.
Related words: Outgoing, expenses, salary
0 in last 36 months
Related words: Adverse, debt, missed payments, arrears
Satisfactorily completed or discharged over 6 years.
Related words: Individual voluntary agreement, adverse, debt
Not accepted.
Related words:Repossessed, adverse, debt
Documents & evidence
We carry out a credit search which will provide a score which indicates if we require further documents and would make up the overall risk band for an applicant.
Related words: DIP, evidence, footprint, history
Please sign and date all pages of any documents being submitted as evidence.
Related words: multiple, multi, signature, evidence, sign, date
Limited Companies & LLPs
Deposits from Inter-company / Director / Shareholder / Partner loans accepted.
Related words: Down payment, Limited Company, Ltd Co, Limited Liability Partnership, LLP
Available to both Individual and Limited Companies / LLP applicants.
Related words: Ltd Co, SPV, House in multiple occupation
LLPs are accepted.
Related words: Limited Liability Partnership, Limited Company, Ltd Co, SPV
New company incorporations are accepted.
Related words: Limited Company, Ltd Co, Limited Liability Partnership, new companies, start up
A personal guarantee must be provided by Limited Company Directors and/or Shareholders with 20% shareholding, and all designated members and members with management rights of an LLP.
Related words: Ltd Co, Limited Liability Partnership, LLP
Acceptable SIC codes:
68100 | 68209 | 68320 | 68201
Related words: Limited Company, Ltd Co, Limited Liability Partnership, Standard Industrial Classification
Property related SPV accepted.
Related words: Limited Company, Ltd Co, Limited Liability Partnership, new companies, start up, special purpose vehicle
Trading companies are not currently accepted.
Related words: Limited Company, Ltd Co, Limited Liability Partnership, existing company, SPV
Loan terms & limits
Permitted for any legal reason other than:
- consolidation of debts that have not been maintained satisfactorily
- Tax liabilities (excluding Capital Gains and Inheritance tax)
- Gambling debts
- Any business purpose that is not property investment.
Related words: Loan terms, conditions, portfolio landlord
- £1m up to 75% LTV
- £1.5m up to 65% LTV
Related words: Size, limit, amount, highest, most, LTV, MUFB, borrow
- Standard – 75%
- Studio Flat – 75%
- New Build- House 75%, Flat 70%
- Above/Adjacent to Commercial – 75%
- Former Local Authority – House 75%, Flat 70%
- HMO – 75%
- MUFB – 75%
NOTE: Total LTV inclusive of fees cannot exceed 80%
Related words: Loan to value, loan size, loan amount, council
30 years.
Related words: Loan limit, most, length
£25,001
Related words: Size, limit, amount, lowest, least
5 years.
Related words: Loan limit, least, length
Mortgage offers are valid for up to 3 months from the date of issue, or expiry of the most recent valuation, whichever is sooner.
Related words: Expire, expiry, period, validity, application
Up to £3m lending held within CHL Group with a maximum of 20 individual loans.
Related words: risk, max, year, loan limit, borrow
CHL mortgages are not portable.
Related words: Moving house, move, purchase
Permitted. Lending is based on the market value where uplift explained by works/changes to the property/title, otherwise value limited to original Purchase Price/pre-works value.
Related words: day one, period, refurb, renovation, enhance, additional borrowing, valuation
Other FAQs
Our CHL 2 product range is not currently available.
Refurbishment products are not currently available.
Related words: Renovate, renovation, enhance, extension, convert, planning permission, building regs, green, eco, environment, energy performance, insulation, windows, doors, heating, loft, garage, rewire, roof, EPC, Cosmetic, Light refurb
Property Criteria
Positive valuer comments required
Related words: Retail, shop, cafe, restaurant, business
- Standard brick and breeze block construction
- Single brick offshoots / extensions (unless this element is a habitable room)
- Modern timber framed construction post 1960 (including space4) with masonry outer skin
- Stone built or brick and mortar built walls
- Modern steel frames property with brick or block and rendered walls
- Modern methods of construction
- Wimpey No Fines and Laing Easiform
Related words: Building, wood, fabrication
C3 and C4.
Related words: Planning permission, student, bedsit, house share
Standard roof construction of slate or tile
Related words: flat roof, thatch
Minimum EPC rating: E.
Related words: Energy performance certificate, eco, green, environment, efficiency
Max. 10 storeys in a block inside M25 (5 elsewhere). Areas with medium / high levels of private ownership.
Related words: Council property, ex-council, social housing
A House in Multiple Occupation (HMO) is a freehold or leasehold property where 3 or more tenants reside forming more than 1 household. Tenants share a lavatory, bathroom or kitchen facilities with other tenants and a HMO licence is required. The Solicitor will be required to ensure all relevant Planning/Change of Use requirements for its proposed use are in place on Completion. Shared Houses considered with rental assessment on a room-by-room basis.
Must need minimal adaption to sell as a family home.
Related words: House in multiple occupation, share, student, property
We define a HMO has having up to 6 bedrooms.
Related words: House in multiple occupation, units, share, student
Large Panel System construction methods are unacceptable to CHL Mortgages.
Related words: prefab, build, tower block, flat, apartment
We will consider lending against properties located in mainland England and Wales.
Related Terminology: Scotland, Ireland, where
- Standard – 75%
- Studio Flat – 75%
- New Build- House 75%, Flat 70%
- Above/Adjacent to Commercial – 75%
- Former Local Authority – House 75%, Flat 70%
- HMO – 75%
- MUFB – 75%
NOTE: Total LTV inclusive of fees cannot exceed 80%
Related words: Loan to value, loan size, loan amount, council
A Multi-unit Freehold Block (MUFB)is a block of self-contained units on a single freehold title.
- We accept blocks with up to 6 self-contained units where there is no HMO element.
- Each unit must have separate services.
- Any element of commercial usage is unacceptable.
Related words: House in multiple occupation, Multi-Unit Freehold Block, share, student, property
Available to both Individual and Limited Companies / LLP applicants.
Related words: Ltd Co, SPV, House in multiple occupation
We define an MUFB as having up to 6 units.
Related words: Multi-unit freehold block
All properties less than 10 years old must hold an adequate warranty
Related words: Property development, construction, age
Considered on a case by case referral basis.
Related words: property management, investment, portfolio, agent
- Standard – Max. 5 Bedrooms (Shared accommodation acceptable)
- Studio Flat – Max. 1 main room.
- New Build – Max. 5 Bedrooms. Above/Adjacent to Commercial – Max. 5 Bedrooms.
- Former Local Authority – Max. 5 Bedrooms.
- HMO – Max. 6 bedrooms. Max. 8 lettable rooms. Max. 2 kitchens (only where valuer comments confirm no impact on saleability). Max. 4 habitable storeys.
- MUFB – Max. 6 self-contained units in the block.
Related words: Multi-unit freehold block, house in multiple occupation, complex
We don’t currently accept short term let properties
Related words: STL, holiday let, serviced apartment, Ltd Co
Units with floor area below 30m2 by referral only.
Related words: Footprint, square feet
Standard, Studio Flat, New Build, Above/Adjacent to Commercial, Former Local Authority, HMO – Freehold and Leasehold, MUFB – Freehold Only. Leasehold terms of less than 76 years remaining at application considered at underwriter discretion and are subject to a maximum LTV of 60%. Minimum 51 years remaining at maturity. .
Related words: Short lease, expiry
Rental Calculation
For products where the initial product term is less than 5 years, we will apply the higher of 5.50%; or the initial pay rate + 2.00%.
For products 5 year fixed or more, we will apply the initial pay rate.
For Lifetime Trackers we will apply the initial pay rate + 2.00% .
Related words: ICR, affordability, tax, interest, revert
For applications including a combination of Additional Rate/Higher Rate/Basic Rate borrowers, we can apply a Blended ICR to determine loan affordability based upon each borrower’s tax status and their individual share of ownership/rent. Please refer to the affordability calculator held on the Documents page of our website to calculate how much your clients can borrow.
Related words: Tax band, percentage, uneven, increase, maximise
Basic Rate 125%. Limited Companies / LLP 125% Higher Rate 140%.
See also Blended ICR
Related words: Company, Ltd Co, Limited Liability Partnership, affordability, tax, assessment