Keystone Property Finance has launched a new range of two-year tracker products for brokers, citing recent volatility in the mortgage market and higher swap rates.
The specialist lender says the products are available for new business, product transfers, PT Plus and Refurb to Let Exit, and are aimed at supporting brokers and landlord clients during a period of market disruption.
The launch follows a sharp rise in swap rates in recent weeks, with Keystone saying two-year rates have risen by more than 100 basis points since the end of February.
The new tracker products are available at up to 65% and 75% loan-to-value, with pricing starting from Bank of England Base Rate plus 1.89% and Base Rate plus 1.99% respectively.
Borrowers taking one of the new products will also be able to move on to a fixed-rate mortgage through Keystone’s Switch & Fix facility when fixed-rate products become available again. The lender said this can be done without application fees or early repayment charges.
Keystone has used similar tracker products in earlier periods of market turbulence, including in October 2022 and October 2023, when it says the products saw strong demand from brokers looking for greater flexibility for clients.
Elise Coole (pictured), managing director at Keystone Property Finance, said: “In recent weeks, we have seen SWAP rates increase significantly. This has created volatility across the mortgage market and has impacted the availability of fixed-rate products.
“Our priority is to ensure brokers and their landlord clients continue to have access to practical and competitive products, even in uncertain market conditions.
“With that in mind, we have moved quickly to launch these trackers to offer more choice and provide greater flexibility to brokers and borrowers alike.
“Importantly, landlords will also have the option to switch onto a fixed rate through our Switch & Fix facility. This allows them to secure longer-term certainty at a time that suits them, without incurring additional costs.
“We introduced similar deals during previous periods of market volatility, and they proved popular.
“As always, our focus is on ensuring brokers have the tools and support they need to navigate changing market conditions.”
