Keystone Property Finance has unveiled a package of measures to assist borrowers and help them complete on their loans during the recent market volatility.
As part of the package, the buy-to-let lender will guarantee that any application currently at the post-offer stage will be protected and will proceed on the terms agreed in the offer letter.
From Tuesday 4 October, Keystone will also launch a range of variable rate products at 65% and 75% LTV with rates starting at Bank Base Rate plus 2.65%.
These products will be available both to new borrowers and borrowers that have already submitted a full mortgage application to Keystone but have not yet reached the offer stage.
Borrowers that applied before 27 September 2022 will be offered a 50 basis point reduction if they decide to switch to one of the lender’s new variable rate mortgages. That means they will be offered rates starting at Bank Rate plus 2.15%, rather than the Bank Rate plus 2.65% offered to new borrowers.
As well as being offered a rate reduction, existing pre-offer applicants will be refunded both the application fee and the valuation fee they have paid on completion.
In a further bid to ensure borrowers are adequately supported in these trying times, Keystone will offer a new ‘switch & fix’ facility for both new and existing applicants. This means any borrower who opts for a variable rate now will be able to switch to an applicable Keystone Property Finance fixed rate product where these are available without having to pay any early repayment charges or application fees.
Keystone has unveiled this new package amid a surge in swap rates and wider market volatility, which have forced a number of lenders to remove their fixed-rate deals.
A Keystone spokesperson said: “We want to reassure brokers that Keystone is well-capitalised and that the unexpected upswing in swap rates and market volatility have contributed to our recent product changes. Brokers can rest assured that we will return to market with a new range of competitive fixed-rate loans when market conditions allow.
“However, in the meantime, our focus is on ensuring that any borrower who currently has an application with us is provided with the means to complete on their mortgage. With the measures we are introducing, that will absolutely be the case.”
