Keystone drops fixed interest rates

The rate cuts apply to all property types, including standard, houses in multiple occupancy and multi-unit properties.

The reductions take effect from today at the buy-to-let lender, and means that rates now start at 5.84 per cent on the standard five-year fixed rate at 65 per cent loan to value (LTV) with a four per cent arrangement fee.

Borrowers will pay an extra 0.1 per cent for the same product at 75 per cent LTV, while on the specialist range the rates sit at 6.04 per cent for 65 per cent LTV and 6.14 per cent for 75 per cent LTV.

On the expat range, products start at 6.09 per cent, while holiday lets start at 6.29 per cent for a five-year fix at 65 per cent LTV.

Keystone highlighted that it will allow any borrower who has completed on a variable rate loan with the lender since September to move onto selected fixed rates at no additional cost.

Elise Coole (pictured), managing director of Keystone Property Finance, said that the lender was keen to provide landlords with “significant cost savings” on their mortgage finance at an economically “challenging time”.

She added: “When planning these cuts, we were mindful of the fact that we wanted to treat all of our borrowers the same, which is why the reductions apply to all products and property types.

“These rate changes put on a very competitive footing in the specialist end of the market and we will continue to look for ways to ensure that brokers and landlords have no need to look elsewhere to satisfy their financing needs.”

Keystone previously cut its fixed rates back in December, while last year saw the lender pass the £1bn lending milestone.