CHL Mortgages unveils HMO lending criteria

CHL Mortgages has unveiled new lending criteria for Houses of Multiple Occupancy.

The buy-to-let specialist has what it believes are the most HMO-friendly lending rules of any UK lender.

CHLs criteria now considers any property that meets its acceptable property criteria, and bases rental cover on the rent obtained from all the individual rooms in a property, rather than on the property as a whole.
It allows registered HMO lending on its full range of products and accepts students, professionals and family members as tenants.

It allows separate Assured Shorthold Tenancies within a single property and permits lending on properties with a maximum of six bedrooms and one kitchen although there is a requirement for a communal living room.

Trevor Child, head of marketing at CHL Mortgages, says: CHL Mortgages is one of the first buy-to-let lenders to clarify its position on registered HMOs in a simple and straightforward manner.

:This clarity will win us incremental business because brokers will know where they stand on such properties.

In short, we lend on registered HMOs.