Keystone unveils stricter portfolio lending policy

The lender added that in recognition of the increased workload brokers will be taking on, it had increased the proc fee paid by 10 basis points on all Classic Range cases – a move announced earlier this month.

Criteria changes

The criteria changes will apply to all portfolio landlords, whether borrowing personally or through a limited company.

The key changes are:

• The entire property portfolio will be stressed at 125% @ 5.5%;
• 100% rental cover will be required on each property;
• Gearing will only be accepted up to 80%;
• An up-to-date property portfolio spreadsheet be required, which will need to be submitted in a standard format alongside the full mortgage application;
• The lender is producing a tool for brokers to use that will convert landlord spreadsheets into the appropriate format.

If a portfolio passes the initial rules, Keystone will then use an automated valuation model to verify a landlord’s valuation and rental figures.

Heavier workload

Keystone COO Steve Olejnik said: “The additional information required from portfolio landlords will of course equate to a much heavier workload for brokers and their clients.

“To ease the process, we are releasing a tool which will enable brokers to convert their clients’ existing portfolio spreadsheets into the format required by Keystone.

“It has always been our aim to try and keep this process as simple as possible, so we hope this tool will be welcomed by both brokers and landlords,” he added.

Keystone noted that for non-portfolio landlords it would be business as usual, without the portfolio spreadsheet requirement.