CHL Mortgages has entered the short-term let market with the introduction of a new five-year fixed rate product range, up to 75% loan to value (LTV).

The new five-year 65% LTV short-term let products have two fee options. The 3.50% rate has a 2.5% fee while the 3.80% rate has a fee of 1%.

The five-year fix 75% LTV short-term let products also come with two fee options. The rates start from 3.75% with a 2% fee and 3.95% with a 1% fee.

Properties will also be considered that are for Airbnb, holiday let or serviced apartments if the valuer confirms the security property is suitable for occupation under an assured shorthold tenancy (AST).

The valuer will also need to confirm that the ICR calculation fits the market rent based on an AST and there is demand for the property from both owner-occupier and investor buyers.

The launch of the short-term let proposition follows the introduction of a new product range for large HMOs and multi-unit freehold blocks (MUFBs).

CHL Mortgages commercial director Ross Turrell says: “Short-term letting is an area which will continue to grow in prominence as the demand for ‘staycations’ increases and this is certainly a sector which intermediaries should be closely monitoring going forward.”