CHL Mortgages
Mortgage Type
Bridging LendersProperty Value (min)
Minimum property values:
Standard single dwellings • £150,000 minimum valuation inside M25
• £75,000 minimum valuation elsewhere.
HMOs • £150,000 minimum valuation inside M25
• £100,000 minimum valuation elsewhere.
MUFBs • £150,000 minimum unit valuation inside M25
• £50,000 minimum unit valuation elsewhere.
Advance (min)
£100,000
Advance (max)
£10,000.000
Term (Max)
18 monthsMinimum Age
25 years oldMaximum Age
85 years old at the end of the termIncome (min)
No minimum - but have to be able to repay loan.Restrictions
Adverse planning restrictions: -Properties where adverse planning restrictions could prevent leases from being created are not accepted.
Loan purpose:
• Applications only accepted on a non-regulated basis.
• Applications can be accepted for the purchase or remortgage of investment property. Refinancing of the borrowers existing or former
residence is not permitted.
• Basement digs are not accepted.
Tenure: Multiple houses on one freehold title not accepted.
Minimum floor area: 30m2 per unit/flat.
Valuation : -
MUFBs will be valued on an aggregate basis as opposed to block value.
• Each unit must also meet our minimum unit value requirement.
• Minimum unit value:
– £150,000 minimum unit valuation inside M25
– £50,000 minimum unit valuation elsewhere.
Limited company applicants:
Acceptable company types Registered Limited Companies including those set up with the specific purpose of buying property (SPVs).
Company location Business must have a UK registered address and must operate entirely within the UK.
Guarantees In all applications, personal guarantees and additional forms of guarantees, where deemed acceptable, will be required from all directors and/or shareholders party to the application.
Directors/shareholders:-
Maximum four qualifying directors/shareholders, none of which may be another limited company. The application will be assessed on the strength of the directors/shareholders as if they are applying for lending facilities on a personal basis. Therefore, personal credit searches will be conducted against each director/shareholder.
Ex-Local Authority Properties
Ex-local authority flats Acceptable where the block is owner occupied.Above/adjascent to commercial Considered on a case-by-case basis. Flats directly above public houses or fast-food premises
not accepted.
Maximum storeys in block 20.
Minimum years remaining on leasehold property
Leasehold acceptable subject to there being a minimum of 50 years unexpired on the lease at the end of the mortgage term. Lending for the purpose of extending the lease is acceptable where this is simultaneous with completion of the loan. Freehold: - Not acceptable for flats or maisonettes unless: – lending is on a multi-unit property; or – conversion to an acceptable leasehold will be undertaken simultaneously with completion of the loan.Minimum Ownership
First-time buyers Not accepted.First-time buyers are individuals who’ve not owned a UK property within the last 18 months.
Permanent rights to reside and remain
Residential status CHL require two years of UK residential address history.EEA and Swiss Nationals EU citizens are acceptable, providing they have two years of UK residential address history
and must provide valid evidence that a settled status has been granted under the EU Settlement Scheme.
A pre-settled status can be considered, where there is more than one applicant and at least
one applicant has either a settled status or indefinite rights to reside in the UK.
Non-EEA nationals Non-EEA nationals must have been resident in the UK for the last two years and have
permanent rights to reside in the UK.
Ex-Patriates
NoNew Builds
Yes, considered.Properties aged less than 10 years must benefit from one of the following warranties, which must exist upon completion of the property
and cannot be applied retrospectively:
• Advantage HCI
• Aedis Warranties
• Ark Residential New Build Warranty
• BOPAS
• Build Assure
• Building Life Plans
• Buildzone
• Checkmate (Castle 10)
• Global Home Warranties
• International Construction Warranties (ICW)
• LABC
• NHBC Guarantee
• One Guarantee
• Premier Guarantee Scheme
• Professional consultants certificate (previously architect’s certificate)
• Protek
• The Q Policy
• Zurich Municipal ‘New Build’
Credit Score
Yes, on application.Historic CCJ’s & Defaults
Maximum allowable adverseIndividuals: -
Bankruptcy: Not accepted
Individual Voluntary Arrangement (IVA): Not accepted
Repossession or secured mortgage default: Not accepted
Debt Management Plan (DMP): Not accepted
County Court Judgement (CCJ) - Must be satisfied or settled in full and explanation provided as to the background for the arrears event
Defaults - Must be satisfied or settled in full and explanation provided as to the background for the arrears event
Secured / unsecured arrears: - Up to date and no more than status 3 ever and explanation provided as to the background of the arrears event
Limited companies: -
Bankruptcy orders Not accepted
Winding-up petitions Not accepted
Insolvency Not accepted
Valuation Fees
Valuation fees are paid direct to the lender at the lenders fee scales on their website. For each type of short term finance, the prices may vary.Maximum number of applicants
4Countries
Property locationAcceptable locations
• All properties must be situated in mainland England and Wales.
• Properties in Scotland, Northern Ireland, Channel Islands, Isle of Man and Isle of Wight will not be considered.
Background portfolio Properties in the applicant’s background portfolio can be located anywhere in the United Kingdom.