The Hampshire-based lender, headed up by MD Bob Young (pictured) which has been closed to new lending since March 2008, has been preparing for a relaunch for months.

The lender was unavailable to comment or confirm a launch date.

CHL has been managing its mortgage book with lowering arrears levels for five and a half years and was a pioneer of both buy-to-let mortgages and self-certification mortgage products for the self-employed.

Meanwhile, the Irish Government is preparing to underwrite the legal separation of CHL Mortgages parent bank Permanent TSB into three parts including a good and bad bank and CHL Mortgages by 2016.

Ben Thompson, MD of Legal & General’s Mortgage Club said he would welcome all new lending players to the market.

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“This is yet another very welcome sign the market as a whole is improving,” he said.