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Keystone launches cheaper green mortgages and cuts rates

Shekina Tuahene
Written By:
Posted:
April 13, 2021
Updated:
April 13, 2021

Keystone Property Finance has become the latest lender releasing products for landlords with more energy efficient properties.

 

The rates of the range are priced at 15 basis points lower than the lender’s core products and they will be available on properties five years or older with an energy performance certificate (EPC) rating of A to C. 

Rates start at 3.04 per cent for a two-year fix at 65 per cent loan to value (LTV) and the equivalent at 75 per cent LTV is 3.2 per cent.

Five-year versions have rates of 3.19 per cent and 3.39 per cent respectively. 

The green range is available for purchase or remortgage and can be lent on all properties, including houses in multiple occupation (HMOs) and multi-units. The loan size ranges from £50,000 to £1m. 

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Keystone will not put the range on sourcing systems as of its launch today, so brokers have been encouraged to contact their business development manager or visit the lender’s website for more information. 

As part of its eco-friendly initiative, Keystone has partnered with environmental group Make it Wild to plant trees to offset its carbon output. 

David Whittaker, chief executive of Keystone Property Finance, said: “The climate crisis is the greatest challenge of our, or indeed any, generation and the only way we can solve it is if we all play a part, including the mortgage and property sectors. 

“Therefore, it’s clear we need to do something – and urgently. Going out and buying a new build with an A or B EPC rating is not an option for most and won’t solve the problem.

“So, what we need is a retrofitting programme on existing properties the likes of which we have never seen before in this country.

“If we can persuade even a few landlords to make their homes greener – and lower the energy bills of their tenants in the process – then this range will have achieved everything we wanted it to achieve,” Whittaker added. 

 

Product changes 

Elsewhere the lender has reduced rates on its core range by up to 20 basis points. Rates now start at 3.19 per cent for a two-year fixed at 65 per cent LTV. 

The lender will now also accept houses in multiple occupancy (HMO) with up to 10 bedrooms instead of the previous eight. It has increased its further advance amount to landlords to £3m from £2m.