Keystone Property Finance cuts fixed rates as swaps slide

The two-year fix was reduced by 10 basis points and starts from 2.89 per cent. The five-year fix was lowered by 25 basis points and starts from 2.99 per cent. 

Its reversion rate was set at the Bank Base Rate (BBR) plus 4.99 per cent to run across all products.

The lender cancelled three-year fixed rates on standard and specialist mortgages.

And it withdrew cashback offers, that had been available to brokers, at 11.59pm on 2 September 2019.

“Swap rates have been lower than expected which has enabled us to offer brokers new products enabling clients to lock into lower rates while the market faces uncertainty over the next three months,” said Keystone Property Finance chief executive David Whittaker (pictured).

“We’re one of the first lenders to make the move from LIBOR to BBR following upcoming changes to the market. I expect many more to make this move over the next year or so. As always, we continue to listen to brokers’ feedback and where possible adjust to meet their requirements,” he said.

The reversion rate change follows the Financial Conduct Authority (FCA) decision to phase out the London Interbank Offered Rate (LIBOR) and replace it with Sterling Overnight Interbank Average Rate (SONIA) by end of 2021.