Keystone Buy to Let Mortgages has again changed its lending criteria.
This follows on from last week’s increase in the maximum loan amount per transaction which was raised from £350,000 to £500,000.
Lender arrangement fees will now be added to loans on all products in the Keystone range, including multi-units and HMOs, allowing borrowers to reach 75% LTV for all property types.
The rental calculation is now based from 130% of the pay rate across the full product range, based on the loan value net of added fees. The previous requirements were for the discounted rates of 100% of the reversion rate + a minimum margin of 3%.
Now, when applying for a discounted rate mortgage for a standard property, on a monthly rental income of £1,000 it will be possible to borrow up to £185,000 (subject to all the lending criteria) against a maximum of £145,000 based on the previous rental income requirement.
David Whittaker, managing director of Keystone Buy to Let Mortgages and Mortgages for Business, said: “These changes highlight Keystone’s commitment to professional landlords with more complex needs, now offering a market leading rental income stress test on the five year fixed rates which can only be good news in the current economic climate.”
Keystone will also accept applications relating to property with corporate leases to PLCs, local authorities and some housing associations as long as the leases are on a full repairing and insuring (FRI) contract up to a maximum of five years.
Rob Lankey, managing director of commercial mortgages at Aldermore, added: “We’ve listened carefully to landlords and believe that the recent reduction of more than 0.5% on our five year fixed rates will work particularly well for borrowers who like the security of longer term fixes coupled with the stability provided by corporate leases.”