The low-risk, mature loans carry an average loan-to-value ratio of just 48% and further enhance the CHL mortgage book which currently houses over 40,000 accounts valued at over £6 billion.
Four-fifths of the newly-boarded loans are residential home loans, with the remaining 20% made up of buy-to-let mortgages. There is an even split between interest-only and capital repayment loan types and 62% of the loans mature within the next eight years.
Geographically the majority (58%) of the loans are secured against properties in Northern Ireland, with the remaining 42% based in England.
Bob Young, Managing Director at CHL Mortgages, commented:
“While we have previously managed these loans, boarding them means we are now controlling them on a different system and legal ownership transfers to CHL. Despite this prior familiarity, boarding a mortgage book of any size brings its own challenges, but our well-established systems and processes have allowed us to do this with the minimum of fuss. We are now able to utilise our bespoke mortgage administration system to manage these loans which makes things easier for all concerned.
“Given the current market focus on arrears management, our strategic partnership with HML allows us complete control in the way we oversee our mortgage book. With another flat year of lending expected, more and more lenders are likely to concentrate on deleveraging their portfolio and this addition is further proof that we are committed to keeping our book as low risk as possible.”