What are the eligibility criteria and fees for CHL's limited edition 75% LTV tracker products?
Quick Answer
CHL's limited edition 75% LTV tracker products specify eligibility based on property EPC ratings (C or above) for specific rates, loan sizes, and a 1.5% product fee, requiring careful consideration of property condition and costs.
## Essential Eligibility for CHL 75% LTV Tracker Products
To qualify for CHL's limited edition 75% LTV tracker products, a primary criterion is the property's energy performance certificate (EPC) rating. The property must achieve an EPC of C or above. Additionally, the minimum loan size for these products is set at £100,000, with an upper limit of £1,000,000. CHL specifies that these particular products apply to standard buy-to-let (BTL) properties, not Houses in Multiple Occupation (HMOs) or multi-unit blocks (MUBs). The lending is typically subject to a stress test of 125% rental coverage at a notional rate of 5.5%, aligning with the standard BTL stress test. This ensures sufficient rental income to cover mortgage payments, despite the Bank of England base rate currently being 4.75% as of December 2025. Investors should confirm their property meets these energy efficiency and rental coverage requirements before applying, especially when considering the potential for higher LTV in their portfolio strategy.
## Understanding the Fees and Associated Charges
For CHL's limited edition 75% LTV tracker products, the typical product fee is 1.5% of the loan amount. This fee is often added to the loan or paid upfront, impacting the initial capital outflow. In addition to the product fee, applicants will be responsible for a valuation fee, which varies based on the property's value, and legal fees. For example, on a £200,000 loan, a 1.5% product fee would equate to £3,000. Broker fees may also apply if you use a mortgage broker. It is important to factor in all these associated costs, including Stamp Duty Land Tax (SDLT), which for BTL properties from April 2025 includes a 5% additional dwelling surcharge on top of the residential thresholds. This means a £250,000 BTL property would incur the standard SDLT rate plus the 5% surcharge on the full purchase price, significantly increasing upfront capital requirements for landlords.
### Scenario Cases to Consider
* **Scenario 1: Standard BTL exceeding EPC C.** An investor with a two-bedroom property valued at £250,000, achieving an EPC rating of B, could secure a £187,500 loan (75% LTV). The product fee would be £2,812.50, plus valuation and legal costs. This allows for higher leverage on an energy-efficient asset.
* **Scenario 2: Older Property without EPC C.** A similar property, also £250,000, but with an EPC rating of D, would not qualify for these specific 75% LTV products. The investor would need to consider products with lower LTVs or remediate the property to achieve the EPC C rating, incurring renovation costs and time. Retrofitting for EPC improvement can cost several thousands, which needs to be balanced against reduced mortgage exit fees or better product access.
* **Scenario 3: Property with high rental income, low value.** An investor seeking a £110,000 loan on a property valued at £140,000 (78.5% LTV) would face an immediate rejection due to the product's 75% LTV maximum. This highlights the strict adherence to the LTV limit and the minimum loan quantum, which can affect investors looking at lower-value properties for higher rental yields.
## Investor Rule of Thumb
Always understand the full cost of acquisition, including product fees, legal fees, valuation fees, and SDLT, before committing to a mortgage product, especially for those with specific eligibility criteria such as EPC ratings. The total cost of acquisition for a buy-to-let, including the 5% additional dwelling surcharge from April 2025, significantly impacts upfront capital.
## What This Means For You
Understanding these specific product criteria is vital for UK property investors considering higher leverage options. The requirement for an EPC C or above for these CHL 75% LTV tracker products highlights the increasing importance of energy efficiency in BTL lending, a trend that is likely to continue with potential future EPC C by 2030 regulations. Most landlords don't make property decisions by chance; they make informed choices based on detailed knowledge of market products and legal obligations. If you want to know how to structure your portfolio to meet lending criteria and maximise returns, this is exactly what we analyse inside Property Legacy Education.
Steven's Take
The introduction of products like CHL's 75% LTV tracker, tied to EPC ratings, demonstrates a clear shift in the lending market. Lenders are increasingly focusing on the quality and energy efficiency of the underlying assets. Investors need to be proactive, ensuring their portfolios meet or exceed these evolving standards. For properties that are already EPC C or better, these products offer a good opportunity for higher borrowing. For those with lower EPCs, it's a wake-up call to factor in improvement costs into their investment strategy or accept less favourable terms. As of December 2025, with the base rate at 4.75%, tracker products can offer flexibility, but the stress test at 5.5% remains a constant hurdle.
What You Can Do Next
Review your property's EPC certificate: Access your current EPC via the GOV.UK EPC register (www.epcregister.com) to confirm it meets the minimum C rating.
Calculate total upfront costs: Use an online SDLT calculator (e.g., gov.uk/stamp-duty-land-tax) and factor in the 5% additional dwelling surcharge for BTL properties, plus CHL's 1.5% product fee, valuation, and legal fees, before applying for these 75% LTV tracker products.
Assess rental coverage: Work out your estimated rental income against the stress test requirement of 125% at a 5.5% notional rate to ensure your property can meet the lender's affordability criteria.
Consult a specialist broker: Speak to a mortgage broker specialising in buy-to-let finance to discuss your eligibility for these specific CHL products and compare them with other available options that align with your portfolio strategy.
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