Applicant Criteria
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
Loan terms & limits
- 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
Property Criteria
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