Quantum Mortgages has introduced a series of changes to its lending criteria in a bid to offer greater flexibility and support to professional and specialist landlords.

Effective immediately for new applications, the lender will now allow affordability to be assessed on the higher of the passing rent, lease value, or AST value for corporate lease arrangements. This is applicable where the tenancy term is at least five years and remains in place for the duration of the initial fixed rate period.

The change is expected to benefit landlords who let to long-term commercial tenants, including housing associations and supported living providers.

HMO/MUFB CHANGES

The lender has also adjusted its valuation policy for houses in multiple occupation (HMOs) and multi-unit freehold blocks (MUFBs), with Open Market Value investment valuations now accepted where the figure does not exceed 15% above the 180-day vacant possession value.

The update is intended to better reflect current market dynamics and provide additional flexibility for complex property types.

SEMI-COMMERCIAL

In addition, Quantum Mortgages has unveiled a new semi-commercial product under its QML Pro range. The QML Pro Mixed Use product allows up to 50% commercial use and is priced 50 basis points lower than the standard QML Pro product.

Importantly, the lender will consider the total rental income – both residential and commercial – for affordability, making the product more accessible to investors in mixed-use properties.

“These changes reflect our ongoing mission to evolve with the needs of the market,” said Harsha Dahyea, chief commercial officer at Quantum Mortgages.

“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.”