Mortgage products designed to offer exclusive rates for higher loan amounts are the most popular product among buy-to-let landlords, according to data from Keystone Property Finance.

58% of Keystone clients applying for its larger loans range since December 2020. The specialist buy-to-let lender’s larger loan range caters for loan sizes of £250,000 – £1 million and offers rates from 3.09%.

Keystone says the rise in popularity for larger loans could be attributed to landlords looking to take advantage of the Stamp Duty Land Tax (SDTL) incentive and being able to afford more expensive properties as a result of the tax saving. Data shows that landlords made up 15% of all sales agreed in November 2020, the highest level for four years, as a result of the SDTL incentive.

The lender argues that landlords continue to take out larger mortgages in expectation of a continued uptick in future property prices and of positive rental yields post-pandemic.

The data also reveals differences in the types of landlords applying for the specialist lender’s larger loan products, with nearly two thirds (62%) of applications coming from limited companies compared to 38% of applications from individual landlords.

Elise Coole, managing director of Keystone Property Finance, said: “Our data shows that landlords remain confident about the buy-to-let market, with the majority of customers looking to secure a larger loan to purchase their property.

“Undoubtedly, the SDLT incentive has played an important part in this and has presented landlords with an excellent opportunity to bolster their portfolios and invest in higher value properties. The private rental market plays a critical role for millions of people and at Keystone Property Finance, we’re committed to supporting our brokers and their landlord clients by offering a wide range of innovative solutions.”