Previously Declined for a Buy-to-Let Mortgage? Four CHL Criteria Changes Mean Some Cases Deserve Another Look

A previous buy-to-let decline may have reflected a lender’s criteria at that moment—not a permanent verdict on the borrower or property. CHL Mortgages has changed four criteria areas at once, potentially widening access for first-time buyers, landlords with low personal earned income and investors considering taller blocks or lower-value properties.

Property Reporter’s 18 September coverage confirms that CHL now accepts applications from first-time buyers, has removed its minimum income requirement for non-first-time buyers, reduced minimum property valuation thresholds and increased the maximum height it will consider for blocks of flats—including ex-local-authority blocks—to 20 storeys.

The changes accompany a limited-edition range for individual and limited-company landlords. It includes standard properties, HMOs and multi-unit freehold blocks with up to six bedrooms or units, with products available up to 80% loan-to-value. Rates start from 3.60%, with different product-fee options.

The rate is not the most commercially important part of the announcement. A competitive rate is irrelevant if a case fails at the first criteria question. The meaningful development is that several borrowers and properties that might previously have been outside one lender’s policy can now be assessed.

Why Criteria Can Matter More Than the Headline Rate

Buy-to-let pricing only becomes relevant after the lender accepts the applicant, property, rental calculation, ownership structure and loan purpose. A case can produce a strong rent and a sensible deposit yet fail because the borrower is a first-time buyer, the flat is above the lender’s permitted floor, the property value is below a minimum or the applicant does not meet an earned-income rule.

Those are policy decisions rather than universal features of the mortgage market. Another lender may take a different view, and the same lender may change its position as funding, risk appetite and portfolio objectives evolve. That is why a decline from one bank is not the same as evidence that no buy-to-let mortgage is available.

It is also why old research has a short shelf life. A recommendation prepared several months ago may no longer represent the strongest route. Equally, a case rejected last year should not simply be resubmitted unchanged: the adviser needs to know the original reason, confirm the latest facts and test current policy across the market.

First-Time Buyer Does Not Mean a Simple First-Time Landlord Case

Somebody buying their first property as a buy-to-let can sit outside the comfort zone of many lenders. They have no history of owning a home, no landlord track record and no existing residential mortgage conduct for an underwriter to assess. The lender may also want to understand why the applicant is buying an investment rather than a home for themselves.

CHL’s decision to accept first-time-buyer applications removes a hard barrier within its own proposition. It does not mean that every first-time buyer can borrow at 80% LTV or select any property in the range. Deposit source, personal income, credit history, rental cover, experience, property type and the plausibility of the transaction still matter.

The distinction between a first-time buyer and a first-time landlord is important. An existing homeowner buying their first rental property is a first-time landlord but not a first-time buyer. The newly announced minimum-income change applies to non-first-time buyers, so the treatment of those two applicants may differ even if neither has previously owned a rental property.

No Minimum Income Does Not Mean No Financial Assessment

The removal of a minimum earned-income threshold for non-first-time buyers could be useful for professional landlords whose wealth and cash flow sit primarily in property. A borrower may draw a modest salary while holding substantial equity, retaining profit in a company or receiving most income from rent. A rigid personal-income minimum can exclude that person before the strength of the portfolio is considered.

Removing the threshold does not remove underwriting. The lender can still examine the applicant’s financial position, credit commitments, portfolio performance, tax position, liquidity and ability to meet costs during voids or repairs. The property must normally satisfy the relevant interest-coverage calculation using the lender’s stressed rate and rent.

For a limited-company application, the company, directors and shareholders may all be relevant. Personal guarantees are common in specialist buy-to-let lending. The lender may examine the company’s activities, existing charges, intercompany transactions and how the deposit has reached the purchasing entity.

A low personal income is therefore no longer necessarily an automatic stop under the announced policy for a non-first-time buyer. It can still be part of the overall risk assessment, and a different lender may impose its own income requirement.

A 17th-Floor Flat May Now Pass the Height Test—but Still Fail Elsewhere

Increasing the maximum height to 20 storeys is particularly relevant to London and other urban markets, where high-rise and ex-local-authority flats can form an important part of the rental stock. An investor considering a flat on the 17th floor may previously have failed CHL’s block-height rule regardless of rent, deposit or personal circumstances.

The new limit removes that specific obstacle. It does not convert every tall-block flat into acceptable security. The valuer and lender may still consider construction type, external wall systems, cladding and fire-safety documentation, balcony access, lift provision, lease length, service charges, ground rent, condition, location, resale demand and the proportion of privately owned units.

Ex-local-authority blocks often require especially careful lender selection. Some lenders limit the number of storeys, restrict certain construction methods, consider deck or balcony access differently or require evidence about the block’s condition and management. A property can fit the headline 20-storey rule and still sit outside policy for another reason.

The practical lesson is to collect the block information before paying for valuation or committing to a timetable. The estate agent’s description and floor number are not enough. The adviser may need the full address, exact storey count, construction, tenure, lease, service-charge information and any available fire-safety or external-wall documentation.

Reduced Minimum Property Values Can Matter Outside London

Minimum property-value rules can obstruct otherwise viable buy-to-let cases in regions where purchase prices are lower. A strong rental yield does not override a lender’s concern about security value, market depth or the potential cost of possession and resale. Reducing the threshold may therefore widen access in parts of the country that were previously excluded.

The published announcement does not state the new valuation figures, so an applicant should not assume that every lower-value property now qualifies. The relevant threshold can vary by property type, location, product and whether the value is the purchase price or the lender’s valuation. Condition and saleability remain important.

A low purchase price can also create a higher apparent yield while concealing capital expenditure. If the property needs substantial works, a standard buy-to-let mortgage may not be appropriate at completion. Bridging or refurbishment finance followed by a term refinance could be considered, but that introduces additional cost, valuation and exit risk.

What 80% LTV Means for Standard BTL, HMOs and MUFBs

The new limited-edition range covers standard single dwellings as well as HMOs and MUFBs with up to six bedrooms or units. Products are available up to 80% LTV for individual and limited-company landlords. That can reduce the deposit required compared with a 75% LTV facility and may help an investor preserve capital for works, tax, fees or another purchase.

Higher leverage also reduces the margin for error. Interest cost is greater, the rental-stress calculation can become harder to satisfy and a fall in valuation has a larger effect on the cash contribution. A five-percentage-point difference on a £400,000 property changes the gross deposit by £20,000 before stamp duty, legal costs, valuation, broker fees and product fees.

For HMOs and MUFBs, the lender will look beyond the bedroom or unit count. Licensing, planning use, layout, tenancy structure, experience, valuation method and management arrangements can all matter. A six-bedroom property is not automatically an HMO that every lender will value or underwrite in the same way.

The Starting Rate Is Not the Cost of the Mortgage

The announced range starts from 3.60%, but a starting rate does not identify the product available to a particular borrower. The rate may be linked to a larger product fee, a specific fixed period, a lower LTV tier or a narrower property category. Limited-edition products can also be withdrawn or repriced with little notice.

A landlord should compare the interest rate, product fee, valuation and legal costs, early-repayment charges, reversion rate, expected holding period and the effect of adding any fee to the loan. On a shorter ownership plan, a lower rate with a large percentage fee can cost more than a higher-rate alternative with a smaller fee.

Criteria fit comes first, but it is not the only objective. Once the viable lender set is clear, the adviser should compare total cost and structure across that set rather than presenting the first lender that accepts the property.

Which Declined Cases Deserve Another Look?

The clearest candidates are recent enquiries where the recorded decline reason was first-time-buyer status, insufficient personal earned income, a property below the lender’s minimum value, a flat above the permitted floor or an HMO/MUFB requirement at higher leverage.

The original evidence should be refreshed. Confirm whether the property is still available, whether the price or rent has changed, whether the borrower’s deposit remains accessible and whether new credit commitments or portfolio changes have arisen. For flats, obtain the block and lease information. For specialist properties, confirm licensing, planning and tenancy arrangements.

The recheck should not be limited to CHL. A market-wide adviser can assess whether CHL’s changes create the strongest route or whether another lender now offers better criteria, lower total cost or a more suitable structure. The point is that current market evidence should replace an old assumption.

What Accountants, Letting Agents and Property Sourcers Should Notice

An accountant may know that a professional landlord’s personal salary is modest because profit is retained within property companies. A letting agent may be marketing a flat in a tall block that repeatedly attracts cash buyers because mainstream mortgage options appear limited. A property sourcer may have an HMO client whose earlier 75% LTV limit left the deposit short.

Those are referral triggers, not reasons to promise a mortgage. The useful message is that criteria have moved and the case deserves a current review. The adviser can then establish whether the borrower and property meet the detailed rules and whether the rent supports the requested loan.

For accountants, ownership and tax structure should be agreed within the accountant’s professional scope before the mortgage is submitted. A limited company can be acceptable to a lender without being the right tax outcome for the client. Mortgage availability should inform the decision, not replace tax and legal advice.

How Willow Private Finance Can Help

Willow can review a new or previously declined buy-to-let mortgage across standard, limited-company, portfolio, HMO and MUFB lenders. We identify the actual criteria risk before focusing on price: borrower status, income treatment, portfolio background, deposit, rental cover, property value, block construction, storeys, tenure, licensing and planning.

Where CHL’s new policy is relevant, we can confirm the current product and criteria through the intermediary channel. We also compare alternative lenders rather than assuming one announcement creates the best result. Rates, fees and criteria can change, so the recommendation must be based on the live case at the point of application.

If the earlier decline arose from a problem that remains unresolved—such as unsupported rent, inadequate deposit, adverse credit, unacceptable construction or missing fire-safety evidence—we will explain that plainly. A criteria change is a reason to investigate, not a reason to manufacture an application.