Keystone increases cashback for landlords

Keystone increases cashback for landlords

 

Landlords will now receive £1,250 back on mortgage loans between £150,000 to £400,000, up from £1,000 previously. 

For those who borrow between £400,001 and £750,000, they will receive £2,000 up from £1,500. Landlords taking out mortgage loans between £750,001 and £1m will get £3,000, up from £2,000. 

Keystone said these changes were made in preparation for the maturities of buy-to-let mortgages this year. It said for those remortgaging onto a new lender, the costs could reach into the thousands and therefore the cashback could offset expenses. 

Elise Coole (pictured), managing director of Keystone Property Finance, said: “The government’s buy-to-let tax reforms in 2016 and the Prudential Regulatory Authority’s decision to overhaul the underwriting rules for portfolio landlords led to a significant spike in the uptake of five-year fixed rate mortgages the following year.  

“It means there will be thousands of landlords coming to the end of their deals this year who will either have to remortgage or opt for a product transfer with their current lender, if they offer one.   

“By enhancing our cashback offering, we are offering landlords the ability to switch onto a competitive fixed-rate deal with another lender without the significant costs usually associated with remortgaging.” 

 

Streamlined range   

The lender has also split its core ranges by type, meaning there are now separate guides for standard, specialist, cashback, holiday let, green mortgages and product transfers. 

Additionally, it has launched an agreement in principle (AIP) certificate, meaning every time a broker completes an AIP with Keystone, they will receive an email confirmation for their records.   

Coole added: “We are constantly asking for feedback from brokers to make sure that we are not only offering the products and services that they need, but also that our processes and systems are as efficient as possible.  

“That’s why we’ve decided to separate our core range, holiday let and product transfers offerings into three separate ranges, each with their own product guide, which will make it easier for our brokers when looking for the best suitable product on the market.”