This will push Keystone’s proc fee for Classic Range mortgages up to 0.7%.
The rise is being introduced to recognise the increased workload which brokers will have to undertake in light of the Prudential Regulation Authority’s new guidelines on underwriting buy-to-let mortgage applications from portfolio landlords. The increased proc fee will be applied to all Classic Range cases even if the client does not meet the portfolio status definition.
The PRA defines a portfolio landlord as a borrower with four or more mortgaged buy-to-let properties.
From October, lenders will be required to adopt a specialist underwriting approach which includes gathering more detailed information than lenders may have previously requested.
David Whittaker (pictured), CEO of Keystone, said: “We are mindful that the PRA has created a clear distinction between portfolio and non-portfolio landlords, and as such, we will have different underwriting policies for both.
“In practice, this means that Keystone may request more detailed information from portfolio landlords to help make the appropriate lending decision. For brokers this will mean that they will have to spend considerably more time working closely with their clients to collect and collate the necessary paperwork before being able to submit a case.”
Keystone is currently developing tools to help streamline the process for brokers. It has pledged to ensure service levels are maintained as the market adjusts to the new environment.