BTL lender also updates arrangement fee offering
Specialist buy-to-let lender Keystone Property Finance has announced that it has reduced interest rates across its product ranges, making standard fixed rate products available from 4.14%.
The most substantial rate cuts are in Keystone’s expat range, where reductions of up to 65 basis points (bps) have been applied. Rates on this range now start at 5.49%.
The lender has also extended rate reductions to its standard and specialist products catering to houses in multiple occupation (HMOs) and multi-unit freehold blocks (MUFBs) up to 15 occupants or units, with reductions reaching up to 55bps.
Keystone has also eliminated the 5.5% and 7% arrangement fee products associated with its five-year fixed rates. Initially introduced to enhance landlords’ affordability during periods of high mortgage rates, these deals, the lender noted, have become obsolete due to recent market rate reductions.
Instead, it introduced a 3% arrangement fee offering within its product transfer range. This new option, starting at 4.89%, aims to provide enhanced flexibility in product choices for individuals approaching the end of their fixed term.
“It’s great to be able to kick the New Year off with a series of significant rate reductions and to offer products starting from 4.14%,” remarked Elise Coole (pictured), managing director at Keystone Property Finance.
“In the past month, swap rates have come down significantly, which has allowed us to make sizeable reductions across our range. Nobody can know for how market conditions will evolve in the coming year, but we’ll continue to pass on any rate reductions as a result of our funding structures as soon as we are able to do so.
“We have also decided to remove our 5.5% and 7% arrangement fee tiers. For a while last year, these products were a useful tool in brokers’ armoury because they allowed landlords to achieve higher levels of leverage in a higher mortgage rate environment. But now that mortgage rates have fallen significantly over the past few months, they have served their purpose and I feel that currently they are no longer a vital part of our offering.”
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