New solution for landlords struggling to get finance

Keystone Buy to Let Mortgages has today announced the launch of its new Solutions Range, a suite of medium term buy to let finance products aimed at landlords who are struggling to get a buy to let mortgage. The announcement was made at Financial Services Expo London 2014 which is being held at Old Billingsgate.

Following the success of the Classic and Premier Ranges, Keystone has announced the launch of a new range created specifically for landlords who are still struggling to get finance in a buoyant buy to let market. The new Solutions Range, is a suite of medium term loans funded by Lancashire Mortgage Corporation.

The range works particularly well for:

• Self-employed individuals, especially those whose income is derived from rent
• Limited companies including SPVs, LLPs & trading businesses
• Ex-pats
• Landlords building up their credit profile
• Landlords struggling to get mainstream finance

Commenting on the launch, David Whittaker, managing director of Keystone said:

“Despite increasing product availability in the buy to let market, lenders continue to take an extremely cautious approach to anything other than the most straightforward of applications. The Solutions Range dares to be different. It recognises that some applications do sit outside of typical lending criteria but often have common threads which, if assessed individually and carefully, make them low risk.”

Some of the common reasons that applications are declined include:

• Non-standard property type
• Unacceptable tenant type
• Complex ownership structure
• Untidy credit profile
• Unacceptable income evidence

Whilst Keystone’s existing Classic and Premier Ranges already cater for some these scenarios, the lending criteria on the Solutions Range has been designed with greater flexibility.

Marc Goldberg of Lancashire Mortgage Corporation said:

“The products are aimed at both individual and corporate landlords who have failed to qualify for a buy to let mortgage but who require a more cost effective, progressive solution than bridging. We believe that the flexible, custom-fit approach to underwriting will help landlords looking to strengthen their financial position and capitalise on the ever-increasing demand for rental property. Crucially, the range provides a medium term solution for landlords who are currently struggling to get finance now but will be in a position to refinance or repay in three years’ time.”

The range is being piloted to brokers attending Financial Services Expo London 2014 and will be rolled out to the wider market from October.

In addition to standard houses and flats, the Solutions Range works for HMOs, multi-lets, blocks of flats owned under a single freehold and flats above commercial premises. Property portfolios may also be considered.

The range also caters for a variety of tenant types and as long as the tenants live in the property under an Assured Shorthold Tenancy agreement, families, couples, students and other sharers are accepted. Corporate lets and FRI leases to local authorities and housing associations will also be considered.

Rates start from 8.49% for individuals and 8.99% for limited companies with higher rates applied to borrowers with more untidy credit profiles. As would be expected fees apply including a £199 assessment fee and a facility fee of 3% of the loan amount. There are also valuation, legal and broker fees.

Keystone Buy to Let Mortgages is an intermediary only lender accessed exclusively by Mortgages for Business.

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