On 30 September, the Prudential Regulatory Authority’s (PRA) new guidelines on underwriting portfolio landlord cases with four mortgaged properties or more become law bringing a possible market slowdown as changes bed in.
The proc fee increases have begun a month earlier than expected and will stay under review, said Keystone.
The lender’s classic range, funded by Paratus AMC, includes standard buy-to-let fixed and tracker products and Houses in Multiple Occupation (HMO) both for private individuals and limited companies.
Rewarding detailed work
Steve Olejnik, COO of Keystone said: “For some time now, we’ve been asking brokers for more detailed information on landlords’ portfolios than previously, so we thought it only right to compensate them for the additional time they now have to spend in preparing an application for submission.”
He added it would be great to see other lenders follow Keystone’s lead and expected moves from one or two specialist lenders also looking for more portfolio business, but warned many lenders have been slow to introduce the technology and processes needed for an efficient transition.
In another change, brokers will have to pay the application and valuation fees to Keystone before submitting cases for underwriting.
Olejnik said: “The new system will reduce potential delays by ensuring that valuations can be instructed as soon as the case has been agreed.”
Keystone said it planned further announcements on the new PRA requirements in the next month.