Quantum Mortgages has introduced a series of enhancements to its lending criteria, with changes 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 houses in multiple occupation (HMOs) and multi-unit freehold blocks (MUFBs), provided the valuation does not exceed 15% above the 180-day vacant possession (VP) value.
The lender has launched a new semi-commercial product under the QML Pro banner.
The QML Pro Mixed Use product is priced 0.50% 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 costeffective solution for mixed-use property investors.
Harsha Dahyea, chief commercial officer, at Quantum Mortgages, said: “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.”
