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Quantum Mortgages releases green ‘LTV boost’ mortgage

Shekina Tuahene
Written By:
Posted:
March 9, 2022
Updated:
March 9, 2022

Quantum Mortgages, the specialist buy-to-let lender set to launch at the end of March, has announced details of its green mortgage product which will be included within its initial range.

 

The lender, which will initially launch via a limited distribution of Legal and General Mortgage Club members, will focus this product on professional landlords who are seeking to upgrade their existing properties in preparation for potential changes to EPC rating requirements in 2025.   

It will offer a reduced completion fee and payrate for energy efficient single unit homes with an EPC rating of A or B. The lender will also exceed its loan to value (LTV) limit by an extra two per cent, bringing it to 82 per cent LTV.  

For properties where the EPC rating is not A or B, but property owners have stated a commitment to improve this, they will be able to borrow the additional two per cent for renovative costs.  

Quantum Mortgages is an intermediary only specialist lender and will initially focus on the needs of experienced landlords. 

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It closed a seed funding round and secured an initial £1bn of mortgage funding with the backing of funds managed by CarVal Investors, a global alternative asset manager. 

Jason Neale, managing director at Quantum Mortgages (pictured), said: “The current range of green mortgages available from other lenders simply offer slightly reduced payrates for properties that are already energy efficient but offer no practical help to landlords wanting to improve the energy efficiency of their lower EPC rated properties. 

“Cost is obviously a considerable barrier to making homes more energy efficient, so we were keen to help landlords not only meet future EPC requirements but to better them.” 

He added: “By exceeding our standard loan to value limits in return for the landlord committing to upgrade the property to an energy efficient home, Quantum Mortgages can help fund the cost of works, removing the considerable capital barrier which can prevent landlords from upgrading homes.”