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