Keystone ups maximum LTV to 80% and hikes HMO limit in criteria overhaul

The specialist buy-to-let lender’s decision to increase its maximum LTV from 75% to 80% opens up its standard and green ranges to landlords with smaller deposits.

Keystone will also now lend on HMOs of up to 15 beds and multi-unit properties (MUP) of up to 15 flats, both up from 10 previously.

The lender will also now accept first-time landlords purchasing an HMO property up to six beds or a multi-unit property of up to six flats (up from four previously).

Keystone has also started lending to retired expat applicants, who can choose from a separate new range with rates starting at 3.34%.

As well as enhancing its criteria, Keystone has also increased its enhanced cashback offer from a maximum of £3,000 to a maximum of £5,000.

Finally, Keystone has also hiked its maximum portfolio size to £10m, from £3m before, and doubled its maximum individual loan size to £2m.

Elise Coole of Keystone Property Finance, said: “2021 was a momentous year for Keystone but we want to lend even more in 2022, which is why we have significantly improved our criteria today. We believe these changes will make us a much more attractive proposition to brokers and landlords operating in the specialist end of the market.

“However, we haven’t made these criteria changes on a whim. They are the result of our ongoing dialogue with our brokers to find out what they and their clients want and need from a specialist buy-to-let lender.

“Recently brokers have been telling us of the need for a greater choice of products at higher LTVs as well as more options for retired expats wanting to buy investment properties back in the UK, and so we have acted upon it.

“Similarly, while we already had generous criteria for HMOs and multi-unit properties, we believe these changes will really make us stand out in the market.

“As a lender, we are always trying to evolve and improve, though, which is why brokers and landlords can expect a lot more from us in the coming 12 months.”