Specialist lending brand Keystone Property Finance has made three important changes to its Classic Range lending criteria.
The acceptable size of a multi-unit has been increased from eight flats to 10, portfolio lending has been doubled from £1m to £2m and, landlords older than 85 years will be now be considered as part of a joint application.
Commenting on the enhancements, David Whittaker, 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.
“The aim of accepting landlords over the age of 85 years within a joint mortgage application will allow many of our older borrowers to continue to leverage their portfolios. We anticipate that this will be a popular criteria enhancement for those who still wish to borrow personally. For applicants borrowing via limited company, the Classic Range has no upper age limit.”
In addition to the changes made in the Classic Range, 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% 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% to 70% LTV to ex-pats, down from 8.99%.
Commenting on the reductions, David Whittaker, CEO of Keystone said:
“The Solutions Range is designed for investors who are struggling to get longer term buy to let finance, so we are delighted to be able make our pricing more appealing especially as the products are available to both individual and limited company borrowers.”
A number of criteria enhancements have also been in implemented. The maximum loan size has been doubled to £1m.
The 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.