Keystone Buy to Let Mortgages has taken on board comments from intermediaries and made two significant improvements to its Classic Range lending criteria.
In response to feedback from brokers and investors Keystone has opened up its offering to accept first-time landlords and trading limited companies.
Commenting on these criteria changes, David Whittaker, managing director of Keystone Buy to Let Mortgages said:
“We talked over the proposed changes with our funding partners, Paratus AMC, and decided that increasing demand for those looking to get into property investment and borrow via a trading limited company was an opportunity not to be missed.
We hope that the introduction of lending to trading companies will help keep costs down for those affected by the Government’s proposed tax relief restrictions.”
Special Purpose Vehicle (SPV) limited companies, corporate structures which are designed to hold property but do nothing else, are already part of Keystone’s lending policy.
Currently 23% of BTL lenders offer products to SPVs. However, only a handful cater to trading limited companies because the underwriting involved takes more time to assess and requires a wider skillset.
Keystone is also urging brokers to submit their clients’ Classic Range purchase applications as soon as possible in an effort to ensure that cases complete before 1st April 2016 when the new stamp duty surcharge of three percentage points comes into effect.
Although it doesn’t guarantee that all purchase cases will complete within this timeframe, Keystone will prioritise applications that are submitted by 29th January 2016