Criteria Search & FAQs

We lend to both Individuals and Limited companies /LLP’s.

Up to 4 individual applicants or Limited Company Directors and/or Shareholders or LLP Members.

• Up to 4 Limited Company Guarantors. Guarantors must include all Directors and Shareholders with ≥20% controlling shares.
• Guarantors must together hold a minimum of 75% or more of the controlling share capital.
• Up to 4 LLP Guarantors which must include all designated members and those members with management rights as detailed in the LLP agreement.

Related words: Ltd Co, SPV, maximum applicants

Related words: Missed payments, adverse

Satisfactorily completed or discharged over 6 years.

Related words: Adverse, debt

Related words: County court judgement, missed payments, adverse, outstanding debt

Status 0 in last 36 months.

Related words: Missed payments, adverse, arrears, payment plan, credit

Related words: Adverse, debt, missed payments, arrears

Deposits from Inter-company / Director / Shareholder / Partner loans accepted.

Related words: Down payment, Limited Company, Ltd Co, Limited Liability Partnership, LLP

Available to both Individual and Limited Companies / LLP applicants.

CHL 1: Small HMO only
CHL 2: Small & Large HMO available

Related words: Ltd Co, SPV, House in multiple occupation

Satisfactorily completed or discharged over 6 years.

Related words: Individual voluntary agreement, adverse, debt

At least one applicant must own a residential or BTL property in the UK.
Portfolio landlords must have a minimum of 12 months landlord experience.
For HMO/MUFB properties (Small and Large) at least one applicant must prove they have owned a minimum of 1 BTL property for 2 years.

LLPs are accepted.

Related words: Limited Liability Partnership, Limited Company, Ltd Co, SPV

85 at the end of the term.

Related words: Repayment, applicant age

No limit on number of properties/mortgages in BTL portfolio.

Related words: Unlimited properties, background properties

21 for primary applicant. (18 for secondary applicants).

Related words: age limit, how old

£20,000 per application

Related words: Salary, wage, combined

Available to both Individual and Limited Companies / LLP applicants.

CHL 1: Small MUFB only
CHL 2: Small & Large MUFB (including Complex HMO & Hybrid MUFB)

Related words: Ltd Co, SPV, House in multiple occupation

New company incorporations are accepted.

Related words: Limited Company, Ltd Co, Limited Liability Partnership, new companies, start up

A personal guarantee must be provided by Limited Company Directors and/or Shareholders with 20% shareholding, and all designated members and members with management rights of an LLP.

Related words: Ltd Co, Limited Liability Partnership, LLP

Minimum landlord experience of 12 months.

Not accepted.

Related words:Repossessed, adverse, debt

UK resident for at least the last 3 years with permanent right to reside.

Related words: Foreign national, expat, citizenship

CHL 1 acceptable SIC codes:
168100 | 68209 | 68320 | 68201

CHL 2 acceptable SIC codes:
All SIC codes considered.

Related words: Limited Company, Ltd Co, Limited Liability Partnership, Standard Industrial Classification

Property related SPV accepted.

Related words: Limited Company, Ltd Co, Limited Liability Partnership, new companies, start up, special purpose vehicle

Trading companies are considered for CHL 2 products only, please refer to us.

Related words: Limited Company, Ltd Co, Limited Liability Partnership, existing company, SPV

Related words: Missed payments, adverse

Satisfactorily completed or discharged over 6 years.

Related words: Adverse, debt

Related words: County court judgement, missed payments, adverse, outstanding debt

The DIP credit search is a soft footprint and doesn’t show on the applicants credit report. The full application will show a hard footprint.

Related words: Decision in Principle, score, history, record

We carry out a credit search which will provide a score which indicates if we require further documents and would make up the overall risk band for an applicant.

Related words: DIP, evidence, footprint, history

Status 0 in last 36 months.

Related words: Missed payments, adverse, arrears, payment plan, credit

We do not apply a debt to income ratio, it is more common for residential mortgages.

Related words: Outgoing, expenses, salary

Related words: Adverse, debt, missed payments, arrears

Satisfactorily completed or discharged over 6 years.

Related words: Individual voluntary agreement, adverse, debt

Not accepted.

Related words:Repossessed, adverse, debt

We carry out a credit search which will provide a score which indicates if we require further documents and would make up the overall risk band for an applicant.

Related words: DIP, evidence, footprint, history

Please sign and date all pages of any documents being submitted as evidence.

Related words: multiple, multi, signature, evidence, sign, date

Deposits from Inter-company / Director / Shareholder / Partner loans accepted.

Related words: Down payment, Limited Company, Ltd Co, Limited Liability Partnership, LLP

Available to both Individual and Limited Companies / LLP applicants.

CHL 1: Small HMO only
CHL 2: Small & Large HMO available

Related words: Ltd Co, SPV, House in multiple occupation

LLPs are accepted.

Related words: Limited Liability Partnership, Limited Company, Ltd Co, SPV

New company incorporations are accepted.

Related words: Limited Company, Ltd Co, Limited Liability Partnership, new companies, start up

A personal guarantee must be provided by Limited Company Directors and/or Shareholders with 20% shareholding, and all designated members and members with management rights of an LLP.

Related words: Ltd Co, Limited Liability Partnership, LLP

CHL 1 acceptable SIC codes:
168100 | 68209 | 68320 | 68201

CHL 2 acceptable SIC codes:
All SIC codes considered.

Related words: Limited Company, Ltd Co, Limited Liability Partnership, Standard Industrial Classification

Property related SPV accepted.

Related words: Limited Company, Ltd Co, Limited Liability Partnership, new companies, start up, special purpose vehicle

Trading companies are considered for CHL 2 products only, please refer to us.

Related words: Limited Company, Ltd Co, Limited Liability Partnership, existing company, SPV

Permitted for any legal reason other than:

• consolidation of debts that have not been maintained satisfactorily
• Tax liabilities (excluding Capital Gains and Inheritance tax)
• Gambling debts
• Any business purpose that is not property investment.

Related words: Loan terms, conditions, portfolio landlord

Max. aggregate borrowing with CHL Mortgages:

• £5m up to 70% LTV
• £3m up to 75% LTV

(with no limit on the number of properties/mortgages)

Related words:portfolio exposure, risk, max, year, loan limit, borrow

• £1m up to 75% LTV
• £2m up to 70% LTV

Related words: Size, limit, amount, highest, most, LTV, MUFB, borrow

•  75%

NOTE: For CHL 1 products the total LTV inclusive of fees cannot exceed 80%

Related words: Loan to value, loan size, loan amount, council

30 years.

Related words: Loan limit, most, length

£25,001

Related words: Size, limit, amount, lowest, least

5 years.

Related words: Loan limit, least, length

Mortgage offers are valid for up to 3 months from the date of issue, or expiry of the most recent valuation, whichever is sooner.

Related words: Expire, expiry, period, validity, application

CHL mortgages are not portable.

Related words: Moving house, move, purchase

All Product Switches/Transfers must be applied for by a professional mortgage adviser registered with CHL Mortgages for Intermediaries (those not already registered to submit business can do so here).

The customer benefits of applying for a Product Switch/Transfer:

• No application fee
• No valuation fee
• No legal fees

Product Switch/Transfer eligibility requirements

To be considered for a Product Switch/Transfer:

• The customer’s existing product must be a CHL-1 product whose loan Completed after 01 January 2024.
• The customer cannot be looking to increase their borrowing, change the term or port the mortgage to a different security property.
• The customer must not require a party to be added or removed from the mortgage.
• The customer’s financial situation must not have materially deteriorated and their existing mortgage account(s) must have been managed satisfactorily and be up-to-date.
• The customer must still be intending to let the property and not currently, or intend to, let the property to a family member.
• Any Product Switch/Transfer cannot be applied for any earlier than 90-days of the end of any existing products’ ERC period.
• Any Product Switch/Transfer cannot be applied to the loan account until after the last day of any existing products’ ERC period.

CHL Mortgages reserves the right to accept or decline any application for a Product Switch/Transfer at our absolute discretion.

For more information on our Product Switch/Transfer service, mortgage intermediaries should speak to our Intermediary Support team on 01252 365 888. Alternatively, please contact your local Business Development Manager.

Related words: switching, change, transferable, transfering

Permitted. Lending is based on the market value where uplift explained by works/changes to the property/title, otherwise value limited to original Purchase Price/pre-works value.

Related words: day one, period, refurb, renovation, enhance, additional borrowing, valuation

Refurbishment products are not currently available.

Related words: Renovate, renovation, enhance, extension, convert, planning permission, building regs, green, eco, environment, energy performance, insulation, windows, doors, heating, loft, garage, rewire, roof, EPC, Cosmetic, Light refurb

Positive valuer comments required

Related words: Retail, shop, cafe, restaurant, business

• Standard brick and breeze block construction 
• Single brick offshoots / extensions (unless this element is a habitable room)
• Modern timber framed construction post 1960 (including space4) with masonry outer skin
• Stone built or brick and mortar built walls
• Modern steel frames property with brick or block and rendered walls
• Modern methods of construction
• Wimpey No Fines and Laing Easiform

Related words: Building, wood, fabrication

Small HMO – C3 and C4. Large HMO – C3, C4 and Sui Generis.

Related words: Planning permission, student, bedsit, house share

Standard roof construction of slate or tile

Related words: flat roof, thatch

Minimum EPC rating: E.

Related words: Energy performance certificate, eco, green, environment, efficiency

Max. 10 storeys in a block inside M25 (5 elsewhere). Areas with medium / high levels of private ownership.

Related words: Council property, ex-council, social housing, former

A House in Multiple Occupation (HMO) is a freehold or leasehold property where 3 or more tenants reside forming more than 1 household. Tenants share a lavatory, bathroom or kitchen facilities with other tenants and a HMO licence is required. The Solicitor will be required to ensure all relevant Planning/Change of Use requirements for its proposed use are in place on Completion. Shared Houses considered with rental assessment on a room-by-room basis.

Small HMO (Available in CHL 1 & CHL 2 ranges)
At least 3 tenants reside forming more than 1 household. Must need minimal adaption to sell as a family home. 

Large HMO (Available in CHL 2 range only)
At least 5 tenants reside forming more than 1 household or any HMO that needs considerable alteration to sell as a family home.

Related words: House in multiple occupation, share, student, property

We define a small HMO has having up to 6 bedrooms and a large HMO as having up to 10 bedrooms.

Related words: House in multiple occupation, units, share, student

Large Panel System construction methods are unacceptable to CHL Mortgages.

Related words: prefab, build, tower block, flat, apartment

We will consider lending against properties mainland England, Isle of Wight and Wales.

Related Terminology: Scotland, Ireland, where

•  75%

NOTE: For CHL 1 products the total LTV inclusive of fees cannot exceed 80%

Related words: Loan to value, loan size, loan amount, council

A Multi-unit Freehold Block (MUFB)is a block of self-contained units on a single freehold title. Any element of commercial usage is unacceptable.

Small MUFB (Available in CHL 1 & CHL 2 ranges)
Blocks with up to 6 self-contained units where there is no HMO element.
Each unit must have separate services

Large MUFB (Available in CHL 2 range only)
Blocks with between 7 and 10 self-contained units or any MUFB which is a ‘Hybrid MUFB’.
Blocks containing units with shared services considered.

Hybrid MUFB
If any element within a MUFB property would be defined as a HMO, then the property will be defined as a Hybrid Multi-Unit property. The HMO element must adhere to our HMO criteria. Hybrid MUFBs require a Large MUFB product, even if there are fewer than 7 units in the block.

Related words: House in multiple occupation, Multi-Unit Freehold Block, share, student, property

Available to both Individual and Limited Companies / LLP applicants.

CHL 1: Small MUFB only
CHL 2: Small & Large MUFB (including Complex HMO & Hybrid MUFB)

Related words: Ltd Co, SPV, House in multiple occupation

We define a small MUFB has having up to 6 units and a large MUFB as having up to 10 units.

Related words: Multi-unit freehold block

A property built or converted within the last 12 months or a property that has never been lived in in its current format.

All properties less than 10 years old must hold an adequate warranty. See also New Build Warranties.

Related words: Property development, construction, age

All properties less than 10 years old must hold an adequate warranty.

CHL accepts the following new build warranties:

• National House-Building Council Buildmark Scheme (NHBC)
• Building Life Plan
• Premium Guarantee Scheme
• Checkmate Castle 10
• LABC New Home Warranty
• Build-Zone Structural Warranty
• Zurich Municipal
• Advantage
• Aedis Warranties
• Global Home Warranties
• Protek
• ICW
• Ark Residential New Build Warranty
• UK Finance compliant Professional Consultants Certificate (PCC) with accompanying Professional Indemnity Insurance*

CHL can consider other new build warranty/insurance schemes where the policy meets the following:

• Provided by an ‘A’ rated insurer by one of the following rating agencies A.M Best, Fitch, Moody’s or S&P.
• Provides cover for a minimum of ten-years from completion of the first sale.
• Includes the cost of complete or part rebuilding in the event of a building defect or structural failure.
• Is fully transferable to a subsequent owner / buyer or a mortgage lender in possession within at least the first 10 years.
• Physical technical site inspections must have occurred at key stages on at least a sample basis.
• The maximum claim must not be less than, the higher of, the re-build cost of the property and the loan amount.
• Claim excesses should be reasonable (in general this should not exceed £1,000).

* CHL Mortgages will not accept retrospective warranties where periodic site visits during the construction/conversion process were not conducted.

Related words: Property development, construction, age

Considered on a case by case referral basis.

Related words: property management, investment, portfolio, agent

• Standard – Max. 6 Bedrooms (Shared accommodation acceptable)
• Studio Flat – Max. 1 main room.
• New Build – Max. 6 Bedrooms. Above/Adjacent to Commercial – Max. 5 Bedrooms.
• Former Local Authority – Max. 6 Bedrooms.
• Small HMO – Max. 6 bedrooms. Max. 8 lettable rooms. Max. 2 kitchens (2 kitchens accepted only where valuer comments confirm no impact on saleability). Max. 4 habitable storeys.
• Large HMO – Max. 10 bedrooms. No maximum number of lettable rooms. No maximum number of habitable storeys.
• Small MUFB – Max. 6 self-contained units in the block.
• Large MUFB – Max. 10 self-contained units in the block.

Related words: Multi-unit freehold block, house in multiple occupation, complex

Available to both Individual and Limited Companies / LLP applicants.

Only available on CHL 2 range.

Related words: STL, holiday let, serviced apartment, Ltd Co

Units with floor area below 30m² by referral only.

Related words: Footprint, square feet

Standard, Studio Flat, New Build, Above/Adjacent to Commercial, Ex-local Authority, HMO – Freehold and Leasehold, MUFB – Freehold Only. Leasehold terms of less than 76 years remaining at application considered at underwriter discretion and are subject to a maximum LTV of 60%. Minimum 51 years remaining at maturity. Transactions involving Head lease/Sub lease are unacceptable.

Related words: Short lease, expiry

For products where the initial product term is less than 5 years, we will apply the higher of 5.50%; or the initial pay rate + 2.00%.

For products 5 year fixed or more, we will apply the initial pay rate.

For Lifetime Trackers we will apply the initial pay rate + 2.00% .

Related words: ICR, affordability, tax, interest, revert

For applications including a combination of Additional Rate/Higher Rate/Basic Rate borrowers, we can apply a Blended ICR to determine loan affordability based upon each borrower’s tax status and their individual share of ownership/rent. Please refer to the affordability calculator held on the Documents page of our website to calculate how much your clients can borrow.

Related words: Tax band, percentage, uneven, increase, maximise

Basic Rate 125%. Limited Companies / LLP 125% Higher Rate 140%.

See also Blended ICR

Related words: Company, Ltd Co, Limited Liability Partnership, affordability, tax, assessment

Defined as a short term let. Acceptable where the Valuer confirms:

• the security property is suitable for occupation under an assured shorthold tenancy including any restrictive lease covenants (AST will not be required);
• the ICR calculation fits on the market rent based on an AST;
• and there is demand for the property from both owner occupier and investor buyers.
  

Considered on a case-by-case referral basis for HMO/MUFB properties.
Only considered for CHL 2 range products.

Defined as a short term let. Acceptable where the Valuer confirms:

• the security property is suitable for occupation under an assured shorthold tenancy including any restrictive lease covenants (AST will not be required);
• the ICR calculation fits on the market rent based on an AST;
• and there is demand for the property from both owner occupier and investor buyers.

Considered on a case-by-case referral basis for HMO/MUFB properties.
Only considered for CHL 2 range products.

Related words: business accommodation, extended stay, housekeeping, holiday let