“In particular, we know that the change from accepting business-to-business loan deposits will make many more limited company cases viable.”
CHL Mortgages, the middleman-only specialist rental lender, has announced criteria changes to its specialist rental purchase criteria and added its criteria to the Knowledge Bank platform.
CHL will now accept B2B loan deposits from related parties and has reduced its ICR for high / additional ratepayers from 145% to 140%.
In addition, the developmental exposure limits in any block have been changed to:
o Blocks up to 6 units: Maximum of 6 units per block,
o Blocks of 7 to 20 units: Maximum of 10 units per block, and
o Blocks over 20 units: The greater of 10 units or 20% per block.
Along with the changes in criteria, CHL’s specialist purchase-lease criteria are now available on Knowledge Bank.
Ross Turrell, Commercial Director at CHL Mortgages commented: “The response to our return to the specialized rental buying market has been overwhelmingly positive and, following feedback from our initial distribution partners, we are making these loan policy improvements to attract more buyer and rental customers. .
“In particular, we know that the change to accepting B2B loan deposits will make many more limited business cases viable and these changes demonstrate our willingness to adapt to the needs of clients and brokers.
“Our launch with Knowledge Bank represents a logical step in our plan to engage with the intermediary community in a sensible, structured and comprehensive manner. Knowledge Bank has firmly consolidated its status as a place where intermediaries can obtain all the relevant information. linked to the criteria and will prove to be a valuable outlet in our overall distribution strategy.
Matthew Corker, Knowledge Bank COO, added: “It’s great to see CHL Mortgages re-entering the specialized hire-purchase market over the past few months and expanding its distribution to reach more brokers.
“Working closely with the CHL team over the past few weeks, it is clear to see the level of knowledge and experience they have, covering some of the more specialized market niches such as HMO / MUFB and products for portfolio owners. I have no doubt they will be well researched on our platform and a valuable addition to our users.