Keystone Property Finance has recently announced a new offering aimed at landlords requiring additional funding. This latest feature, part of Keystone’s PT Plus range, is specifically tailored for landlords undergoing product transfers.
The new offering comprises both 2-year and 5-year fixed rates with a maximum loan-to-value (LTV) of 80%, in line with the rates of its existing product transfer options. Moreover, the arrangement fees for these products are set at 1.5% or 3.5%.
An affordability assessment will be conducted to determine the size of the further advance. This new service is open to applications from both individuals and limited companies. It’s important to note that all applications must be made through an intermediary to uphold the adviser-client relationship.
For limited company applications, borrowers are required to seek independent legal advice, which can be facilitated through Keystone via ILA Law for a fee of £175+VAT per director, or sourced independently.
Elise Coole, managing director of Keystone, emphasized the significance of this new offering, stating, “This is a major move not only for Keystone but the entire market. 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. This proves once again that we are ahead of the curve when it comes to product innovation.”
Coole also elaborated on the benefits of the new service, “There are many good reasons to opt for a product transfer, which is why they have become so popular with borrowers over the past few years. However, one of the drawbacks is that they are like-for-like transactions, meaning that borrowers cannot tap into the equity in their properties when they need it without going through the full remortgage process or resorting to a second charge loan. By offering further advances on PT cases, we are offering a cost-effective and hassle-free way for landlords to release extra capital.”
This innovative new offering from Keystone provides a welcome option for landlords seeking to maximize the potential of their property investments. It is evident that the company is dedicated to providing flexible and tailored solutions to meet the evolving needs of its clients.