The lender said that the variable rate products will come out next Tuesday and range from 65 to 75 per cent loan to value, with rates starting 2.65 per cent plus the base rate.
The products will be available to new borrowers and borrowers that have submitted a full mortgage application but have not reached the offer stage.
Borrowers that applied before 27 September will be offered a 50 basis point reduction if they switch to the new deal, which means the offer will be 2.15 per cent plus the base rate.
It added that pre-offer applicants will also be refunded their application fee and the valuation fee they have paid on completion.
Keystone continued that it would offer a switch and fix facility for new and exiting applications, so borrowers that opt for a variable rate now can switch back to a fixed rate product when they are available without having to pay an early repayment charge or application fee.
The lender had to temporarily pull fixed rate deals earlier this week due to ongoing market volatility.
“We will return…with new fixed rate loans”
Keystone added that it will guarantee any application at the post-offer stage is protected and will go ahead on terms agreed in the offer letter.
A Keystone spokesperson said: “We want to reassure brokers that Keystone is well-capitalised and that the unexpected upswing in swap rates and market volatility have contributed to our recent product changes.
“Brokers can rest assured that we will return to market with a new range of competitive fixed rate loans when market conditions allow.”
Keystone continued: “However, in the meantime, our focus is on ensuring that any borrower who currently has an application with us is provided with the means to complete on their mortgage. With the measures we are introducing, that will absolutely be the case.”
