Metro Bank adds first limited company BTL; Keystone launches 3.79% rate – round-up

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  • 09/07/2024
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Metro Bank adds first limited company BTL; Keystone launches 3.79% rate – round-up
Metro Bank has released its first limited company buy-to-let (BTL) mortgage as it continues to focus on the specialist lending market.

The product is available up to 75% loan to value (LTV), and Metro Bank said the limited company must be non-trading and solely hold residential property. It must also be a special purchase vehicle (SPV) and not engaged in wider activities. 

There is no minimum income requirement, but at least one director must be earning an income other than rental. 

Portfolio landlords will be accepted up to a maximum of 10 properties. The maximum age Metro Bank will lend to is 85 and the interest coverage ratio (ICR) is 125%. 

Charles Morley, director of mortgage distribution at Metro Bank, said: “Launching a limited company buy-to-let product has been on our agenda for some time, and we’re really excited for it to go live today as we continue our journey to becoming the number one specialist lender on the high street. 

“Owning a property portfolio within a limited company rather than as an individual can bring a number of benefits. While limited company buy-to-let is already an established market, we see the potential for it to grow even further.” 

In its annual results for 2023, Metro Bank said it would be pivoting towards specialist lending.

 

Keystone Property Finance launches ‘summer special’ range 

Keystone Property Finance has released a limited-edition range of mortgages for summer, with rates starting at 3.79%. 

This includes two- and five-year fixed options for standard and specialist BTL properties, such as houses in multiple occupation (HMOs) and multi-unit properties. 

The products have a higher 7% arrangement fee, which Keystone Property Finance said allowed it to offer lower loan rates. 

There is a two-year fix up to 70% LTV with a rate of 3.79%, and a five-year fix up to 65% LTV priced at 4.59%. There is also a five-year fix at 75% LTV with a rate of 4.69%. 

For HMOs and multi-unit properties with 1-6 occupants or units, Keystone Property Finance has a two-year fix up to 70% LTV with a rate of 3.89%. 

At 65% LTV, there is a five-year fix priced at 4.84%. At 75% LTV, this is priced at 4.94%. Both are also open to first-time landlords. 

There are also a pair of five-year fixed rates for specialist HMO and multi-unit properties with 7-15 occupants or units, with rates beginning from 5.09%. 

Elise Coole, managing director of Keystone Property Finance, said: “We are thrilled to announce the launch of our new limited-edition ‘summer special’ product range, which has been designed to ease affordability issues for landlords at a time when swap rates remain elevated. 

“Offering a range with higher fees has allowed us to significantly reduce our rates, which now start at a highly competitive 3.79%.” 

She added: “This range gives landlords an extra option and allows those struggling with affordability to achieve higher levels of leverage. 

“Our limited-edition ‘summer special’ range once again demonstrates our commitment to supporting our brokers and their clients with innovative solutions that meet their needs.” 

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