Light Refurbishment

Refurbishment Buy-to-Let

Buy-to-Let Mortgages

CHL 2

Refurbishment products designed for cosmetic or non-structural works which can be signed-off under the Competent Persons Scheme, without the need for building controls sign-off.

Standard Buy-to-LetSmall HMO / MUFB

Available to Individuals and Limited Company borrowers

2 Year Fixed

LTV	Rate	Fee
75%	4.40%	5%
	5.90%	2%
	6.90%	0%

ERC: 3/2
Revert rate: BBR* +4.99
ICR: Highest of 5.50%; or initial pay rate + 2%

5 Year Fixed

LTV	Rate	Fee
75%	6.11%	5%
	6.71%	2%
	7.11%	0%

ERC: 5/5/3/3/3
Revert rate: BBR* +4.99
ICR: Pay rate

Up to 6 HMO Bedrooms / MUFB Units

2 Year Fixed

LTV	Rate	Fee
75%	4.50%	5%
	6.00%	2%
	7.00%	0%

ERC: 3/2
Revert rate: BBR* +4.99
ICR: Highest of 5.50%; or initial pay rate + 2%

5 Year Fixed

LTV	Rate	Fee
75%	6.21%	5%
	6.81%	2%
	7.21%	0%

ERC: 5/5/3/3/3
Revert rate: BBR* +4.99
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): 3.75% correct at time of publication

Examples of acceptable works

Replacement floor coverings
Painting & decorating
Replacement fixtures & fittings
Replacement internal doors
Minor repairs
Replacement heating systems
Improved insulation
Full rewiring
Replacement windows & doors
Replacement bathrooms & kitchens
Integral garage/loft conversion to habitable space (roofline must not be affected)
Conversion of C3-dwelling to Shared house/C4-HMO
Replacement roof coverings
Non-load bearing internal re-configuration

Cost & timeframe

Cost of works: No more than 25% of the pre-works value
Timeframe: Up to 90 days from initial mortgage advance

Pre-works status

Property does not need to be lettable at point of initial mortgage advance.

Retention

A retention will be held between the pre-works and post-works value and market rent for up to 120 days from initial mortgage advance.
The retention will be released upon confirmation by a Valuer Reinspection of full completion of works as defined within the agreed schedule and of the post-works value and market rent.
If the property is not lettable at the point of reinspection the retention will continue to apply for up to 120 days from initial mortgage advance.

Standard Buy-to-Let definition

We define a Standard Buy-to-Let as a property with up to 5 bedrooms. This can be a single family dwelling, studio flat or existing shared accommodation where no HMO licence is required. For detailed property criteria see our Criteria Guide or use our Criteria & FAQ search tool below.

Small HMO/MUFB 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).

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.

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.