Keystone increases proc fee on Classic range and cuts rates

Keystone has also reduced a term tracker mortgage by 10 bps to 4.39%.

Criteria changes have been made too. The maximum number of units in a multi-unit has been increased to six, from four. Minor unsecured credit will now be considered and maximum lending exposure is now £1m.

Applicants who are not homeowners must own at least two buy-to-let properties.

Keystone has also launched an online broker portal, known as KASS (Keystone Application Submission System), to speed up case processing and allow brokers to track the stages of every deal.

Managing director, David Whittaker, said: “Despite the Brexit result, it’s business as usual at Keystone. The reduction in rates means that we are now able to better compete on pricing, particularly with five-year fixes.”

The company has now introduced separate stress tests for individual and limited company borrowers. For individuals, the new formula of 145% at pay rate or a notional rate of 5.25%, whichever is the higher, will be applied to term trackers and three-year fixed rates. For borrowers choosing a five-year fixed rate, the pay rate will be used.

Stress tests for limited companies are to remain at 125% of pay rate or notional rate of 5.25%, whichever is the higher, for term trackers and three-year fixed rates. For limited company borrowers choosing five-year fixed rates, the pay rate will be used.