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CHL to start lending for first time since 2008

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CHL Mortgages is looking to start lending again next year.

The buy-to-let lender pulled out of the market in 2008 and has managed its book since then.

But Money Marketing sister-title Mortgage Strategy understands plans are afoot to begin lending again as early as the start of next year.

CHL could not be reached for comment.

Part of the reason it has taken so long to re-enter the market is down to the financial situation of its former parent Permanent TSB, which suffered badly during the financial crisis. PTSB was required to sell off non-core assets as part of an agreement with the EU after being bailed out in 2011.

But in March US-based private equity firm Cerberus Capital LP bought 50 per cent of CHL’s loan book from PTSB, which amounted to £2.5bn of loans. As part of the deal, Cerberus also acquired the legal entity Capital Home Loans and the lender’s servicing platform.

Prior to the Cerebus deal, there had been several failed tempts to sell the lender.

PTSB, then known as Irish Life & Permanent, first looked at offloading CHL in 2011 in a plan known internally as Project George, before deciding against the sale.

Then, in 2012, former managing director Bob Young attempted a management buyout. Despite agreeing a sale price, the deal collapsed.

In 2014, Young and four senior managers stepped down from their roles to set up new entrant Fleet Mortgages.

The Cerebus deal completed last summer.

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