Keystone Property Finance overhauls criteria  

Published on

Keystone Property Finance has revamped its HMO offering and hiked its maximum loan to value (LTV) to 80% as part of a major overhaul of its lending criteria.

The specialist buy-to-let lender’s decision to increase its maximum LTV from 75% to 80% opens up its standard and green ranges to landlords with smaller deposits.

Keystone will also now lend on HMOs of up to 15 beds and multi-unit properties (MUP) of up to 15 flats, both up from 10 previously.

In addition, the lender will also now accept first-time landlords purchasing an HMO property up to six beds (HMOs were not available to first-time buyers before) or a multi-unit property of up to six flats (up from four previously).

Keystone has also started lending to retired ex-pat applicants, who can choose from a separate new range with rates starting at 3.34%.

Keystone has also increased its enhanced cashback offer from a maximum of £3,000 to a maximum of £5,000. The lender’s new cashback tiers are as follows:

  • £1,250 for loans between £150,000 – £400,000;
  • £2,000 for loans between £400,001 – £750,000;
  • £3,000 for loans between £750,001 – £1,000,001;
  • £4,000 for loans between £1,000,001- £1,500,000;
  • £5,000 for loans between £1,500,001 – £2,000,000.

Finally, Keystone has also hiked its maximum portfolio size to £10m, from £3m before, and doubled its maximum individual loan size to £2m.

Elise Coole of Keystone Property Finance said: “2021 was a momentous year for Keystone but we want to lend even more in 2022, which is why we have significantly improved our criteria today. We believe these changes will make us a much more attractive proposition to brokers and landlords operating in the specialist end of the market.

“However, we haven’t made these criteria changes on a whim. They are the result of our ongoing dialogue with our brokers to find out what they and their clients want and need from a specialist buy-to-let lender.

“Recently brokers have been telling us of the need for a greater choice of products at higher LTVs as well as more options for retired ex-pats wanting to buy investment properties back in the UK, and so we have acted upon it.

“Similarly, while we already had generous criteria for HMOs and multi-unit properties, we believe these changes will really make us stand out in the market.

“As a lender, we are always trying to evolve and improve, though, which is why brokers and landlords can expect a lot more from us in the coming 12 months.”

Latest POLL

COMMENT ON MORTGAGE SOUP

We want to hear from you!
Leave a comment and get the conversation started.
You need to register to post, so please login or sign up below.

Latest articles

Square 1 Media announces May Mortgage Market Debate

Square 1 Media is to hold its next Mortgage Market Debate on Wednesday, 21 May,...

Coventry BS maintains status as one of the best workplaces

Coventry Building Society has been named one of Great Place to Work's UK’s Best...

Atom bank breaks Near Prime record

Atom bank has reported another record-breaking month for Near Prime activity. Over the course of...

Berkeley Alexander appoints new BDM

General insurance provider Berkeley Alexander has announced the appointment of Grant Robinson as a...

Other news

Lenders must step up on high LTV products

Things are on the up for borrowers with a smaller deposit. The financial information...

Square 1 Media announces May Mortgage Market Debate

Square 1 Media is to hold its next Mortgage Market Debate on Wednesday, 21 May,...

Coventry BS maintains status as one of the best workplaces

Coventry Building Society has been named one of Great Place to Work's UK’s Best...