Keystone Property Finance cuts BTL rates and fees

All of its product transfer rates have been cut by 0.2 per cent and now start at 6.29 per cent. 

The products within its switch and fix range have been cut by the same margin, and rates now begin at 5.79 per cent. This range allows borrowers on a variable rate to switch to a fixed rate deal with low fees. 

The lender has also reduced the fees on its houses in multiple occupation (HMO) and multi-unit products by 0.5 per cent and fees now begin from 2.5 per cent. 

Elise Coole (pictured), managing director at Keystone Property Finance, said: “With swap rates still volatile and many lenders increasing their rates, I’m delighted to be able to announce these reductions. One of our core principles is to ensure that we pass on rate and fee reductions to brokers and borrowers as soon as we are in a position to do so, rather than waiting around. This is further proof of that. 

“The past few weeks have brought challenges for funding conditions, but we remain eagle-eyed to spot opportunities to bring down the cost of borrowing from us as a lender – and we won’t hesitate to introduce further reductions when circumstances allow.” 

High rates, low fees 

Within its complex range, Keystone has introduced two products with 4.5 per cent fees.  

This is available to those with a large HMO or multi-unit property of up to 15 beds or units who want to purchase or refinance. The first has a rate of 6.19 per cent at 65 per cent loan to value (LTV), while the other is available up to 75 per cent LTV and priced at 6.29 per cent. 

Coole added: “One of the things brokers have been telling us consistently over the past few months is that they would like to see more lower rate, higher arrangement fee deals. So we have acted. 

“The main benefit of this type of deal, of course, is that borrowers can typically achieve larger loans than if the rate were a little higher and the fee a little lower. While it might not be right for every borrower, we hope this move demonstrates that we listen to our brokers and that we are willing to act on their suggestions wherever possible.”