CHL Mortgages has launched a new product range for large houses in multiple occupation (HMO) and multi-unit freehold blocks (MUFB), designed for properties with seven to 10 bedroom/units.

The new product will see CHL Mortgages move further into the complex multi-unit/tenanted buy-to-let (BTL) market.

It follows the recent launch of the company’s seven-year fixed rate product range and is in addition to its existing HMO and MUFB range which allows up to six bedrooms/units.

The new larger HMO/MUFB product range is available up to 75% LTV with a headline rate of 3.35% fixed for five years with a 2.5% fee with an alternate option of 3.60% with a 1.25% fee.

For HMOs, CHL Mortgages allow a maximum of 10 bedrooms with no limit on the number of lettable rooms. 

All types of HMO will be acceptable including licensed, C4 planning use, Sui Generis planning use as well as properties requiring alteration to sell as a family home. 

For MUFBs, a maximum of 10 units in the block are allowed under the new product range, providing all units have separate services. 

For both HMOs and MUFBs, at least one applicant must be able to evidence that they currently own and have owned a BTL property for a minimum of two years.