The lender said it had taken on board comments from intermediaries and as a result made a number of changes to its lending criteria in the classic and premier product ranges.
While first-time landlords have been included in the new criteria, Keystone specified that they must also own their own home or another property.
New-build flats have also been included in the change. New-build houses have been a part of Keystone’s lending policy since it launched in 2012, but previously new-build flats were deemed a high risk because of over-supply and over-valuation prior to the recession.
Further improvements include the increase of multi-units from four to six in one freehold property, with HMOs accepted with up to 10 bedrooms.
David Whittaker, managing director of Keystone Buy to Let Mortgages (pictured), said: “We talked over the proposed change with our funding partners, Aldermore Bank, and decided that increasing demand from those looking to get into residential property investment was an opportunity not to be missed. However, in order to ensure some level of experience in managing mortgage finance and/or property, the criterion comes with the stipulation that first-time landlords must also own their own home (or another property).
“Clearly, with the current housing shortage and more prudent lending environment, there is no reason why new-build flats shouldn’t be adequate security, particularly in strong city locations.”
