Popular lenders change rates and products for landlords

Keystone Property Finance has expanded its services by introducing further advances for landlords undergoing product transfers.

As part of Keystone’s PT Plus range, this aligns with the rates of its existing product transfer offerings and includes both two- and five-year fixed rates with a maximum LTV of 80%. The arrangement fees for these products are set at 1.5% or 3.5%.

Keystone says it’s open to applications from individuals and limited companies but all applications must be made through an intermediary to maintain the adviser-client relationship, and Keystone will cover the cost of a physical valuation, while also offering a procurement fee of 0.55% on total borrowing.

For incorporated landlord applications, borrowers are required to seek independent legal advice via ILA Law for a fee of £175 + VAT per director, or sourced independently.

“There are many good reasons to opt for a product transfer … 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” says Elise Coole, managing director of Keystone.

Meanwhile The Mortgage Works has changed its mortgage criteria for incorporated landlords.  

It will accept Limited Company purchase applications to use as a buy to let where the company is purchasing a property that is currently owned and lived in by one of its directors.

This is similar to let-to-buy transactions for standard buy-to-let cases. The Mortgage Works’ existing Limited Company product range will be available to these applications.  

Joe Avarne, Senior Manager, Buy-to-Let Mortgages at The Mortgage Works, says: “The Mortgage Works has been supporting the limited company buy-to-let market since 2018 and, as one of the largest buy-to-let providers in the market, we remain committed to supporting all types of landlords. This latest change is another example where we are responding to feedback we’ve had from landlords and brokers alike. We are always looking at ways to improve our offering for limited companies and are pleased we’ve been able to make this change.” 

And Tony Field, Sales and Operations Director, at Dynamo adds: “It’s great to see TMW looking to evolve their Limited Company proposition by allowing customers to purchase their residential home within a Limited Company structure for use as a buy to let. This could offer a route to enter the buy-to-let market for the first time or indeed allow landlords to expand their portfolio.”