The deal is available in the firm’s single unit and multi-unit ranges up to 70 per cent loan to value.
It allows borrowers with a two-year clean repayment history to refinance, even if their rental income does not meet the typical 125 per cent ICR requirement.
If there is no additional borrowing, other than refinance costs, the minimum ICR requirements will be cut to 100 per cent, so the rental income only needs to cover the new mortgage payment.
The product is available to individuals and limited companies and acceptable properties include standard houses, flats and studios, high-rise blocks and houses in multiple occupation and multi-unit blocks of up to six units.
Quantum Mortgages has also lowered rates on single unit, multi-unit and specialist ranges by up to 0.4 per cent, and expat and foreign national rates have fallen by up to 1.3 per cent. The QML Pro range for non-standard property construction and specialist tenancies have been cut by around 0.7 per cent.
‘Lower ICR requirement offers solution’
Jason Neale (pictured), managing director at Quantum Mortgages said: “We are seeing many portfolios that include loans on a lender’s variable or reversionary rate, which are now as high as 10 per cent.
“These are mortgages that have recently came to the end of a five-year fixed where the initial ICR was calculated using a rate between three per cent and four per cent so with today’s interest rates are impossible to refinance.”
He added: “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 per cent. Whilst this may be a solution for some landlords, we wanted to provide an alternative option which doesn’t erode too much of their equity.”
Gindy Mathoon, senior mortgage and protection adviser at Create Finance, said: “Having worked with Quantum Mortgages for a while now, it’s not surprising to see them providing more options for the challenges landlords face.
“The high fee, lower rate option has helped many of our clients, however, it is not suitable for all, including for example, higher rate taxpayers who hold properties in their own name and must satisfy higher ICRs of up to 145 per cent.”
He noted: “This lower ICR requirement, coupled with Quantum Mortgages’ unique criteria proposition, allows us to offer both new and existing professional landlord clients a solution to most of their finance needs”.
