HMO / MUFB

Buy-to-Let

STL_Transparent_180px - CHL Mortgages for Intermediaries

Buy-to-Let Mortgages

CHL 1CHL 2

Criteria: CHL 1 vs CHL 2

	CHL 1	CHL 2
Trading Companies
Adverse	0 in 36m	Considered

Small HMO / MUFB

Up to 6 HMO Bedrooms / MUFB Units

2 Year Fixed

Limited Edition

LTV	Rate	Fee
75%	2.99%	7%
	3.44%	6%
	3.92%	5%
	4.67%	3.5%
	5.44%	2%
	6.40%	0%

ERC: 3/2
Revert rate: BBR* +4.50
ICR: Highest of 5.50%; or initial pay rate + 2%

2 Year Fixed

LTV	Rate	Fee
65%	2.82%	7%
70%	2.95%	7%
75%	4.02%	5%
	4.77%	3.5%
	5.54%	2%

ERC: 3/2
Revert rate: BBR* +4.50
ICR: Highest of 5.50%; or initial pay rate + 2%

5 Year Fixed

Limited Edition

LTV	Rate	Fee
70%	5.14%	5%
75%	4.78%	7%
	4.94%	6%
	5.17%	5%
	5.90%	2%
	6.39%	0%

ERC: 5/5/3/3/3
Revert rate: BBR* +4.50
ICR: Pay rate

5 Year Fixed

LTV	Rate	Fee
55%	4.59%	7%
	5.04%	5%
	5.41%	3.5%
	5.77%	2%
65%	4.68%	7%
	5.14%	5%
	5.49%	3.5%
	5.86%	2%
70%	4.78%	7%
	5.24%	5%
	5.59%	3.5%
	5.97%	2%
75%	4.88%	7%
	5.27%	5%
	5.63%	3.5%
	6.00%	2%

ERC: 5/5/3/3/3
Revert rate: BBR* +4.50
ICR: Pay rate

For Large HMO/MUFB see CHL 2

NOTE: Any HMO which would require considerable alteration to sell as a family home or any MUFB which is ‘hybrid’ (containing a HMO element) classifies as Large HMO/MUFB.

Criteria: CHL 1 vs CHL 2

	CHL 1	CHL 2
Trading Companies
Adverse	0 in 36m	Considered

Small HMO / MUFB

Up to 6 HMO Bedrooms / MUFB Units

2 Year Fixed

LTV	Rate	Fee
65%	3.28%	7%
75%	4.47%	5%
75%	5.99%	2%

ERC: 3/2
Revert rate: BBR* +4.50
ICR: Highest of 5.50%; or initial pay rate + 2%

5 Year Fixed

LTV	Rate	Fee
65%	5.10%	7%
	5.55%	5%
	6.28%	2%
75%	5.23%	7%
	5.68%	5%
	6.42%	2%

ERC: 5/5/3/3/3
Revert rate: BBR* +4.50
ICR: Pay rate

Large HMO / MUFB

Up to 10 HMO Bedrooms / MUFB Units

2 Year Fixed

LTV	Rate	Fee
70%	4.60%	7%
75%	5.58%	5%
	6.33%	3.5%
	7.12%	2%

ERC: 3/2
Revert rate: BBR* +4.50
ICR: Highest of 5.50%; or initial pay rate + 2%

5 Year Fixed

LTV	Rate	Fee
75%	6.21%	7%
	6.67%	5%
	7.02%	3.5%
	7.38%	2%

ERC: 5/5/3/3/3
Revert rate: BBR* +4.50
ICR: Pay rate

NOTE: Any HMO which would require considerable alteration to sell as a family home or any MUFB which is ‘hybrid’ (containing a HMO element) classifies as Large HMO/MUFB.

* Bank of England Base Rate (BBR): 4.50% correct at time of publication

HMO Definition

Small HMO Definition

We define a Small House in Multiple Occupation (HMO) as a residential property with a maximum of six bedrooms, which requires minimal adaption to sell as a family home, where both of the following apply:

at least three tenants live there; forming more than one household and tenants share a lavatory, bathroom or kitchen facilities with other tenants; and
a HMO licence is required (e.g. council Additional licensing scheme).

Large HMO Definition

We define a Large House in Multiple Occupation (HMO) as a residential property with a maximum of 10 bedrooms, which requires minimal adaption to sell as a family home, where both of the following apply:

- at least five tenants live there; forming more than one household and tenants share a lavatory, bathroom or kitchen facilities with other tenants; and
- a HMO licence is required (e.g. council Additional licensing scheme).

Large HMO products are also suitable for Complex HMO

MUFB Definition

Small MUFB Definition

We define a Small Multi-Unit Freehold Block (MUFB) as a freehold property made up of between two and six self-contained units.

Large MUFB Definition

We define a Large Multi-Unit Freehold Block (MUFB) as a freehold property made up of between seven and ten self-contained units. Large MUFB products are also suitable for Complex MUFB.

Hybrid MUFB Definition

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.

For detailed property criteria see our Criteria Guide or use our Criteria & FAQ search tool below.