Keystone Property Finance has expanded its services by introducing further advances for landlords undergoing product transfers.
This new feature, part of Keystone’s PT Plus range, aligns with the rates of its existing product transfer offerings and includes both 2-year and 5-year fixed rates with a maximum loan-to-value (LTV) of 80%. The arrangement fees for these products are set at 1.5% or 3.5%.
The size of the further advance will be determined through an affordability assessment, and Keystone is open to applications from both individuals and limited companies. 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 procuration fee of 0.55% on the total borrowing.
For limited company applications, borrowers are required to seek independent legal advice, which can be facilitated through Keystone via ILA Law for a fee of £175+VAT per director, or sourced independently.
Elise Coole, managing director of Keystone, commented on the new offering: “This is a major move not only for Keystone but the entire market.
“We were one of the first securitising lenders to offer product transfers and are one of an even smaller pool of lenders to allow a further advance alongside a product transfer.
“This proves once again that we are ahead of the curve when it comes to product innovation.”
Coole further explained the benefits of this new service: “There are many good reasons to opt for a product transfer, which is why they have become so popular with borrowers over the past few years.
“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.”
