CHL Mortgages has introduced a new light refurbishment range tailored for buy-to-let investors. This offering is significant as it allows landlords to access funding for essential property improvements, enhancing the potential rental income and property value.
What are the key features of the new buy-to-let mortgages?
The light refurbishment range includes two-year fixed rates beginning at 4.40% for single dwelling properties and 4.50% for Houses in Multiple Occupation (HMO) and Multi-Unit Freehold Blocks (MUFB) with up to six bedrooms or units. For five-year fixed rates, the starting points are 6.11% for single dwellings and 6.21% for HMO and MUFB properties. All products are available to both individual and limited company landlords, with a maximum loan-to-value (LTV) of 75% and various product fee options.
How can landlords benefit from this buy-to-let mortgage offering?
This new range is particularly beneficial for landlords aiming to make significant improvements to their properties, such as installing new kitchens or bathrooms, upgrading fixtures, and even converting properties from C3 to C4 HMO classifications. By facilitating these enhancements, landlords can potentially increase their rental income and property values, making this a strategic move in the current buy-to-let market.
What this means for buy-to-let investors
The introduction of CHL Mortgages’ light refurbishment range is a positive development for buy-to-let investors. It provides them with the financial flexibility to undertake necessary renovations that can improve tenant appeal and increase rental yields. As the rental market evolves, having access to tailored mortgage products like this can help landlords stay competitive.
Frequently asked questions
What types of properties qualify for the light refurbishment range?
The light refurbishment range is available for single dwelling properties as well as HMOs and MUFBs with up to six bedrooms or units.
What improvements can landlords make with this mortgage?
Landlords can use this mortgage to fund various improvements, including installing new bathrooms or kitchens, replacing fixtures, and undertaking full rewiring.