New PT Plus range will match the rates of its existing PT offerings
Keystone Property Finance has introduced a new option for landlords to secure further advances alongside one of its product transfer (PT) products.
The lender’s new PT Plus range will match the rates of its existing PT offerings and is one of the few in the industry to combine further advances with PTs.
Landlords can choose from two- and five-year fixed rates with a maximum loan-to-value (LTV) of 80%. The rates are accompanied by arrangement fees of either 1.5% or 3.5%. The eligibility for further advances will be based on an affordability assessment, applicable to both individual and limited company applications.
Applications must be submitted through an intermediary, with Keystone offering a procuration fee of 0.55% on the total borrowing amount.
A physical property valuation is required for all PT Plus applications, and Keystone will cover the associated costs, not the borrower. In addition, directors of limited companies need to seek independent legal advice, which Keystone offers through ILA Law at a cost of £175 plus VAT per director or can be sourced independently.
Our NEW Product Transfer Plus product offering.
— Keystone Property Finance (@KeystonePF) April 24, 2024
This evolution of PT allows your landlord client to seamlessly switch to a fixed rate but also take out additional borrowing of up to 80% LTV.
Find out more here >> https://t.co/hXwXflpoyO pic.twitter.com/jz6P8hylYE
“This is a major move not only for Keystone but the entire market,” said Elise Coole (pictured), managing director of Keystone Property Finance. “We were one of the first securitising lenders to offer product transfers and are one of an even smaller pool of lenders to allow a further advance alongside a product transfer.”
Coole further emphasised the significance of the initiative and highlighted that while product transfers are popular for their simplicity, they traditionally do not allow borrowers to access their property’s equity without undergoing a full remortgage process or taking a second charge loan. She said Keystone’s PT Plus aims to simplify the process, allowing landlords to release additional capital efficiently and cost-effectively.
“The ability to release extra capital with a product transfer is something brokers have told us was sorely needed in the market – so we have acted on that,” she added. “As a lender, we recognise the value of the advice that brokers give to their clients which is why we require all applications to be submitted via an intermediary and pay a competitive 0.55% proc fee to reflect this.”
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