Mortgage Solutions23 August 2026

CHL opens bridging to more adverse-credit borrowers — but London landlords still need a watertight exit

CHL Mortgages has widened its bridging criteria to include more adverse-credit cases, with rates from 0.7% a month, loans from £100,000 to £10m and borrowing up to 75% LTV. For London landlords, that could unlock auction, chain-break and refurbishment deals, but only if credit issues, valuation route, legal position and refinance or sale exit are evidenced from day one.

CHL Mortgages bridging financeadverse creditLondon landlordsauction finance refurbishment finance

A bridging rate of 0.7% a month will grab attention, but the real story is that CHL Mortgages is now willing to consider more borrowers with adverse credit — including some cases involving unsatisfied CCJs, debts and arrears — on loans from £100,000 to £10 million at up to 75% LTV.

This article is general information, not legal or financial advice. Rules can change and may apply differently to each property. Check the dated source and seek appropriate professional advice before acting.

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Key obligations

When referring or advising clients, letting agents and landlords must ensure clients’ adverse-credit details (e.g. unsatisfied CCJs, secured/unsecured arrears) are disclosed and fully documented for underwriter assessment.
Confirm whether a property is eligible for an AVM vs. requiring a physical valuation; agents should not assume physical valuations will be carried out.
For refurbishment bridging, agents/landlords must ensure compliance with planning, building regulations, and appropriate survey/legal documentation (especially for structural works) as lenders will want evidence.
Use of CHL products currently requires access via DA brokers, selected mortgage clubs, or CHL’s bridging packager panel — ensure you or your broker has the correct authorisation/route before advising clients.
Ensure tenancy agreements, existing charges and legal priorities are checked and disclosed (lenders will require clear details of existing security or charges).

Recommended actions

Identify landlord/borrower candidates who could benefit (adverse credit, auction buyers, chain breaks, refurbishment projects) and flag the product as a potential option.
Advise clients to fully declare any CCJs, debts or arrears; gather supporting documentation in advance to speed underwriting.
Confirm with CHL or its approved packager/broker whether the specific property qualifies for an AVM. If not, arrange for a full valuation/survey — for heavy refurbishments arrange structural surveys and costed works schedules.
Work only with directly authorised brokers or the lender’s approved packagers/mortgage clubs. If you currently refer to non-DA advisers, ensure they have access to CHL distribution routes or switch to an approved intermediary.
Warn clients about bridging loan characteristics: relatively high monthly interest (from 0.7%/month), short-term nature, and the need for clear exit strategies (sale, refinance, completed refurbishment).
Review tenancy and security positions before sanctioning bridging finance (e.g. existing charges, tenant rights, notice periods) and get legal advice where necessary.
Update internal referral and compliance checklists to capture AVM acceptance, adverse credit disclosures, proposed works scope, and distribution route eligibility.
Train frontline staff/brokers on the product scope and limitations so initial client triage (eligibility, document checklist) is accurate and avoids wasted time.

Source: View source material

This summary is informational only. Verify product terms, eligibility, valuations, distribution routes and regulatory status directly with CHL Mortgages, the lender’s packager/broker partners, and/or legal/regulatory advisers (including the FCA) before advising clients or proceeding with transactions.

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CHL opens bridging to more adverse-credit borrowers — but London landlords still need a watertight exit | Rentals & Sales