Keystone moves to 85% LTV for first time

Keystone moves to 85% LTV for first time

Buy-to-let lender Keystone Property Finance has increased its maximum loan to value to 85 per cent for the first time.

The 85 per cent LTV loans are available on its standard core range and come in two, five and seven-year fixed rate options. 

The two-year fixed rate is priced at 4.79 per cent, whereas the five and seven-year fixed rate are priced at 4.99 per cent and 5.19 per cent, respectively. 

All three products are available on loans of between £50,000 and £500,000.

Chris Costello, mortgage and protection adviser with CRC Mortgages welcomed the move.

He said: “Hopefully they set the tone for some of the other players to come back at the higher LTV’s. 

“There’s definitely demand for these high LTV products and they serve a purpose for some client.”

This latest offering follows a number of criteria and product upgrades introduced by Keystone this year, including offering seven-year fixed rates for the first time, improving its enhanced cashback offering and accepting HMO applications from first-time landlords. 

In April the lender also lifted its maximum portfolio size to £10mn and its maximum individual loan size to £2mn.

Managing director of Keystone Property Finance, Elise Coole said: “We’ve significantly enhanced our criteria and product set in 2022 and this is the next stage in the evolution of our offering. 

“However, we never make changes to our range for the sake of them; they are always made based on our ongoing conversations with the broker community. 

“One of the things that brokers have been telling us is that there are not enough products available for landlords with smaller deposits, which is why we have decided to increase our maximum LTV to 85 per cent on our standard range.”

“We’re confident that our new offering fills a need in the market and will be well received by both brokers and landlords,” Coole added.

This is not the first increase Keystone has made as back in April, the lender increased its LTV from 75 per cent to 80 per cent on its standard buy-to-let range.