Quantum Mortgages has announced a series of enhancements to its lending criteria for new applications.
In a move designed to better reflect the realities of corporate leasing arrangements, the lender will now accept the higher of passing rent, lease value, or AST value for affordability assessments on corporate leases. This applies where the tenancy term is a minimum of five years and remains valid throughout the initial fixed rate period, offering greater clarity and opportunity for landlords with long-term commercial tenants such as housing associations or supported living providers.
Open market value investment valuations will now be accepted for HMOs and MUFBs, provided the valuation does not exceed 15% above the 180-day vacant possession (VP) value. The change is to support the evolving needs of a professional landlord and is more market-reflective, allowing for extended flexibility in lending decisions for complex property types.
The lender has also launched a new semi-commercial product under the QML Pro banner. The QML Pro mixed use product is priced 50 basis points lower than the standard QML Pro offering and allows up to 50% commercial use. All rental income (both residential and commercial) can be considered for affordability, providing a more accessible and cost-effective solution for mixed-use property investors.
Harsha Dahyea, chief commercial officer at Quantum Mortgages, commented: “These changes reflect our ongoing mission to evolve with the needs of the market. By listening to broker feedback and understanding the challenges faced by specialist landlords, we’re proud to deliver criteria that offer greater flexibility, transparency, and opportunity.”
