The product allows for a rental cover calculation of 125 per cent, based on the actual rate of 4.49 per cent taken, with an LTV of 85 per cent.
An early repayment charge of 5 per cent is payable until April 2010 with a 1 per cent completion fee which can be added to the loan. A proc fee of 0.5 per cent also exists on the product. Student lets and limited company lending is also available on the offer with the rental calculation for multiple occupancy based on adding individual room rental income rather than the property as a whole.
CHL has also confirmed the product does not require any proof of accounts up to a total of £2 million in an effort to appeal to landlords who are looking to increase their property portfolios.
Mike Healy, head of sales at CHL, said the ‘no accounts’ ruling would further enhance CHL’s standing in the buy-to-let market. He said: “The ‘no accounts’ rule is an attraction to landlords looking for larger loans and from established landlords who want to build their portfolios. So they now have access to a first-rate buy-to-let product and do not have to show us their accounts. We will base our lending decision solely on the ability to generate rental income.”
James Carter, IFA at Virtue Financial, agreed the CHL buy-to-let offering would appeal to experienced landlords. He said: “The product allows a high level of borrowing with the 125 per cent rental cover calculation and has a good initial rate. However, it has a two-year overhang which is not as good.”
He added that borrowers should not look solely at the initial rate with other costs within the mortgage deal to be considered.
