Keystone cuts rates and introduces new 7% fee tier

Keystone Property Finance has cut its rates by up to 10 basis points and introduced a new range of products with 7% arrangement fees to allow landlords to achieve higher levels of leverage.

The specialist lender’s new 7% arrangement fee products come with lower rates than its other five-year fixed rates, allowing landlords to borrow more than if they were to take out a product with a higher rate but lower fee.

The new arrangement fee options include a 5.49% five-year fix at 65% LTV and a 5.59% five-year deal at 75% LTV, available on loans up to £2m and £1.5m, respectively.

Meanwhile, the lender has reduced its five-year standard, specialist, expat and holiday let products by 10 basis points. Its two and five-year product transfer and Switch & Fix rates have come down by the same amount.

Keystone has also cut its two-year standard and specialist 65% LTV deals by 5 basis points, meaning that lender’s two-year and five-year mortgages now start at 5.19% and 5.49%, respectively.

Elise Coole, managing director at Keystone Property Finance, said: “Over the past few months we have been very active in improving our range to ensure we not only have the best possible rates available but also that we provide solutions to suit a wide range of landlords.

“Our new 7% arrangement fee options are a classic example of that. With rates much higher than they were, many landlords are now struggling to achieve the leverage they want. However, our new 7% arrangement fee options come with lower rates, making it much more likely they will walk away with a loan size that works for them.

“We know that nobody knows their clients better than brokers do. So we will continue to work closely with advisers to ensure we continue to deliver what landlords want.”