And no… it isn’t just because they share an office with us! Gary McKenna shares some key points on why landlords should pay attention to this specialist lender.
Knowing the ever-changing criteria, rates, fees and appetites of all mortgage lenders is a large part of our role as brokers, so I have to admit that having a specialist lender like Keystone Property Finance sat in the same office gives us a huge advantage when comes to keeping up to date with their product offerings.
You may now be thinking my blog is to gain brownie points or an extra cup of tea occasionally (which won’t hurt if it does pan out that way) but the reality is, they have become a real option for landlords. I phrase it like this because when I first started using Keystone I only saw them as a specialist solution for unique cases. However, things have evolved…
Just this morning Keystone reduced its rates again, with five year fixed rates now starting from 3.99% (4.9% APR)* to 75% LTV. Combining this with flexible criteria, Keystone really has moved up the sourcing table and will start to feature on landlords’ radars if it hasn’t already done so.
Until recently Keystone’s high end pricing may have deterred some landlords, however a number of reductions in rates over the past year has brought them into line, if not slightly ahead of the competition.
There are numerous reasons Keystone has succeeded in the past. The ability to lend to SPVs, trading companies, ex-pats and individuals being one – it is very rare for a lender to accommodate all types of borrower. This, combined with the array of property types Keystone will lend on, has resulted in Keystone being one of my first thoughts, particularly with when sourcing products for a landlord looking to finance HMOs, ex-Council stock, flats above commercial property and blocks of flats to name but a few.
Keystone has really helped me out on a few cases where other lenders are less supportive of first-time landlords. As long as the applicant is a homeowner and has a minimum income of £25,000 per annum they will assist.
In conclusion, Keystone is a not only a lender for unique cases, but also for landlords with more standard requirements. These days Keystone can also help with commercial mortgages, short-term finance and auction finance.
Gary McKenna has left Mortgages for Business for pastures new. For more information or for any questions relating to this blog, please contact the Buy to Let Team on 0345 345 6788, where one of our consultant mortgage brokers will be happy to assist.
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Why you should consider five year fixed rates
A blog highlighting why it is now more important than ever to consider a five year fixed rate.
The small print:
*Fixed at 3.99% for 5 years (to 31/01/2022) reverting to 4.88% (LIBOR + 4.50%). For purchases and remortgages. Early Repayment Charge: 5% of the amount being repaid for the first year, then 4% until the end of year 2, then 3% until the end of year 3, then 2% until the end of year 5 from drawdown (can overpay by 10% per annum without penalty). Overall Cost for Comparison: 4.9% APR. Loan to Value: 75% loan to value up to £750,000 loan amount. Lender Arrangement Fee: 2% added to loan. Broker Fee: A broker fee of £497 will apply (other fee options available). Repayment Options: Interest only or repayment. Rent to Interest Cover: The rental income must exceed 145% of the cost calculated at 3.99%. Minimum Income Required: None.
14th September 2016