CHL Mortgages enters short-term rental sector
UK: CHL Mortgages has entered the short-term let market with the introduction of a five-year fixed rate product range.
The range offers up to 75 per cent loan to value (LTV). Five-year 65 per cent LTV short-term let products have two fee options. The 3.50 per cent rate has a 2.5 per cent fee while the 3.80 per cent rate has a fee of one per cent.
The five-year fix 75 per cent LTV short-term let products also come with two fee options. The rates start from 3.75 per cent with a two per cent fee and 3.95 per cent with a one per cent fee.
Properties will be considered that are for Airbnb, holiday let or serviced apartments if the valuer confirms the security property is suitable for occupation under an assured shorthold tenancy (AST).
The valuer will also need to confirm that the ICR calculation fits the market rent based on an AST and there is demand for the property from both owner-occupier and investor buyers.
The launch of the short-term let proposition follows the introduction of a new product range for large HMOs and multi-unit freehold blocks (MUFBs).
CHL Mortgages commercial director Ross Turrell said: “Short-term letting is an area which will continue to grow in prominence as the demand for staycations increases and this is certainly a sector which intermediaries should be closely monitoring going forward.”