It also reduces rates by as much as 1.3%
Specialist buy-to-let lender Quantum Mortgages has announced the launch of a new product designed to help landlords who are stuck on reversionary rates and unable to remortgage due to higher interest cover ratio (ICR).
Available on the lender’s single unit and multi-unit ranges from September 29, the product will allow borrowers with a two-year clean repayment history to refinance, even where the properties’ rental income does not meet the usual 125% income coverage requirements.
The minimum ICR requirements for Quantum’s new product will be reduced to just 100%, meaning the rental income need only cover the new mortgage payment.
The 100% ICR product at up to 70% loan-to-value (LTV) will have rates from 5.99% with a refund of the valuation fee. It will be available to individuals and limited companies with acceptable properties including standard houses, flats and studios, high rise blocks, plus houses in multiple occupation and multi-unit blocks of up to six units.
Quantum Mortgages – shortlisted for the Lightfoots Solicitors Award for Buy-to-Let Lender of the Year in the 2023 Mortgage Introducer Awards - has also reduced rates on its single unit, multi-unit, and specialist ranges by up to 40 basis points (bps), while the expat and foreign national range has seen rate cuts of up to 1.3%.
We are thrilled to announce that Quantum Mortgages is shortlisted for the "Lightfoots Solicitors Award for Buy-to-Let Lender of the Year" by Mortgage Introducer. 🏠
— Quantum Mortgages (@QML_Mortgages) September 28, 2023
Thanks, Mortgage Introducer and Lightfoots Solicitors, for this recognition. 🙏#MortgageIntroducerAwards pic.twitter.com/e5io1LN9ZP
The QML Pro range – for nonstandard property construction and specialist tenancies – has also been repriced with rate reductions of up to 70bps.
“We are seeing many portfolios that include loans on a lender’s variable or reversionary rate, which are now as high as 10%,” Jason Neale (pictured), managing director at Quantum Mortgages, said. “These are mortgages that have recently come to the end of a five-year fixed, where the initial ICR was calculated using a rate between 3% and 4%, so with today’s interest rates are impossible to refinance.
“Most lenders’ solution to the current challenge with ICRs is to continue hiking product fees to subsidise the payrate, with some fees now reaching an eye-watering 10%. While this may be a solution for some landlords, we wanted to provide an alternative option which doesn’t erode too much of their equity.”
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