The ‘no accounts’ rule applies across the board to all buy-to-let products provided by CHL and its Irish Permanent brand. Together with the new maximum loan sizes of £2m on LTVs of 75% (previously £500k) and £1m on LTVs of 85% (previously £500k), the move is designed to appeal to established landlords with growing portfolios.
Mike Healy, Head of Sales at CHL and IP, said: “The changes are intended to attract more business from investors looking for larger loans and from established landlords who want to build their portfolios. Such individuals will now not have to show us their accounts, given that we will base our lending decision solely on the ability to generate rental income. I am confidant that the ‘no accounts’ rule to £2m will undoubtedly win us a larger share of the BTL market.”
“In the past, when total BTL lend exceeded £500,000, we asked for accounts which proved troublesome for some applicants and often killed the deal. By pushing this to £2m and doing away with the need for accounts, we simply allow them to state their income on the application form.”
The higher lending limit applies to CHL and IP BTL products, including a new two-year BTL 4.75% fixed-rate mortgage.
Available to individuals and limited companies, with student lets and houses divided into self-contained flats permitted, the product has a rental cover of 125% of the interest payment calculated at the 4.75% pay rate.
The standard procuration fee payable is unlimited at 0.5% of the sum advanced. The product does not have a higher lending charge.
