CHL Mortgages entered the short-term rental market with the introduction of a new range of five-year fixed rate products, up to 75% loan-to-value (LTV).
The new five-year 65% LTV short-term rental products have two fee options. The 3.50% rate has a 2.5% fee while the 3.80% rate has a 1% fee.
Five-year fixed 75% LTV short-term rental products also come with two fee options. Rates start at 3.75% with a 2% fee and 3.95% with a 1% fee.
Properties intended for Airbnb, vacation rental or serviced apartments will also be considered if the appraiser confirms that the security property is suitable for occupancy under an Assured Short Term Rental (AST).
The valuer will also need to confirm that the calculation of the ICR corresponds to the market rent based on an AST and that there is demand for the property from owner-occupiers and investor buyers.
The launch of the short-term rental proposal follows the introduction of a new product line for large HMOs and multi-unit freehold blocks (MUFBs).
CHL Mortgages Commercial Director Ross Turrell said: “Short term rentals is an area that will continue to grow in importance as demand for ‘stays’ increases and it is certainly an area that intermediaries should watch closely in the future.