The lender has also introduced a seven per cent fee option for landlord borrowers and this is available up to 70 per cent loan to value (LTV). There will still be a five per cent fee option available up to the same LTV tier, while two and three per cent fees are available up to 75 per cent LTV.
CHL’s five-year fix with a seven per cent fee starts at 5.94 per cent for individual and limited company borrowers, 5.99 per cent for small houses in multiple occupation (HMO) and multi-unit freehold blocks (MUFBs), and 6.04 per cent for large HMO and MUFB.
Rates start from 6.44 per cent for options with a five per cent fee, 6.93 per cent with a three per cent fee or 7.19 per cent with a two per cent fee.
Affordability is calculated at interest coverage ratio (ICR) payrate. A blended ICR will be applied where there are joint applicants and there is a combination of additional rate, higher rate and basic rate taxpayers.
Ross Turrell, commercial director at CHL Mortgages, said: “We have started to see a stabilisation in the money markets recently, which has enabled us to reduce our rates. Additionally, we have taken the opportunity to implement a number of different fee options, which alongside our broad criteria and underwriting experience further supports our intermediaries and their clients’ needs.”
Quantum Mortgages cuts rates by up to 1.1 per cent
Quantum Mortgages has reduced rates across two, five and seven-year fixes for both purchase and remortgage purposes.
Reductions of between 0.4 per cent and 1.1 per cent have been made.
Spencer Gale, director of distribution and marketing at Quantum Mortgages, said: “Experienced and professional landlords are still seeking opportunities to enhance their portfolio to achieve their desired yields and margins, despite the BoE rate rise for the 14th consecutive time to 5.25 per cent last week.
“With the money markets remaining stable after the most recent rise, it seemed appropriate to review our pricing strategy and pass on the reductions to landlords. With QML also broadening its product range last week with the addition of QML Pro, these changes as we approach the busiest months of the year, should enable landlords to extract maximum value from their portfolio in remortgaging and enhancing it through their purchases.”
