Keystone Property Finance enhances lending criteria

The specialist buy-to-let lender has raised the number of flats accepted in a multi-unit property from 8 to 10 and increased its portfolio lending to £2m, previously set at £1m.

Borrowers aged over 85 will now be accepted on joint applications.

David Whittaker (pictured), CEO of Keystone, said: “In Q3 2016, multi-units were typically averaging yields of 8.7% compared to just 5.6% for standard buy-to-let property, so increasing the number of separate units in a freehold block to 10 will appeal to landlords who like to take advantage of the economies of scale. And we know from the brokers who place cases with us that many investors are moving towards these larger properties.”

Keystone has also implemented changes and price cuts in its Solutions Range. All standard rates have been reduced by 27 basis points and now start at 6.89% to 75% loan-to-value (LTV). The rate for foreign nationals has been reduced by 60 basis points and is now 8.39% to 70% LTV. The range also offers 7.89% available up to 70% LTV to ex-pats, down from 8.99%.

Several criteria enhancements have been applied to its Solutions range. The maximum loan size has doubled to £1m while rates designed for ex-pats and foreign nationals will now also be available to first-time buyers in these categories.

Early repayment charges will now apply only for the first five years of the loan, down from nine years, and the amounts in each year have been reduced to 4% in the first year to just 1% in year five.