Keystone improves loan deals for landlords

Keystone improves loan deals for landlords

Specialist lender Keystone Property Finance has improved its offer to landlords and business owner occupiers.

The intermediary only lending firm has increased the acceptable size of a multi-unit from eight flats to 10, its maximum loan size has been doubled to £1m and landlords older than 85 years will be now be considered as part of a joint application.

Rates on its Keystone’s Solutions Range now start from 6.89 per cent for individuals and limited companies, while early repayment charges will now only apply for the first five years of the loan, down from nine years.

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David Whittaker, chief executive of Keystone said: “In Q3 2016, multi-units were typically averaging yields of 8.7 percent compared to just 5.6 percent for standard buy to let property, so increasing the number of separate units in a freehold block to 10 will appeal to landlords who like to take advantage of the economies of scale."

The aim of accepting landlords over the age of 85 years within a joint mortgage application has been designed to allow older borrowers to continue to leverage their portfolios. 

In its Solutions Range, Keystones standard rates have been reduced by 27 basis points and now start at 6.89 percent for a 75 per cent LTV.

The rate for foreign nationals has also been reduced by 60 basis points and is now 8.39 per cent for 70 per cent LTV. The range also offers 7.89 per cent at 70 per cent LTV to ex-pats, down from 8.99 per cent.

Whittaker said: “The Solutions Range is designed for investors who are struggling to get longer term buy to let finance, so we are delighted to be able make our pricing more appealing especially as the products are available to both individual and limited company borrowers.” 

Kim Barrett, proprietor of Barrett's Financial Solutions, said the improved deal from Keystone was indicative of a mortgage market suffering as the property market slows in pace.

He also saw Keystone's rise in the acceptable size of a multi-unit occupancy as a symptom of the maturity of many landlords.

"If you look at a cross selection of clients you will probably 3-4 out of 10 have got another property they are letting out," he said. "People are really embedding themselves in property as an asset class and through the years everyone has become a mini property mogul."