Keystone Property Finance has increased the amount of cashback it pays on large loans by as much as 50% to give a New Year’s boost to landlords looking to both purchase and remortgage.
From today, landlords who borrow between £150,000 and £400,000 will receive £1,250 back in cashback, up 25% from £1,000 previously.
Those who borrow between £400,001 and £750,000 will receive £2,000 cashback (up 33% from £1,500) while those borrowing between £750,001 and £1m will receive £3,000 (up 50% from £2,000).
The news comes as a wave of buy-to-let fixed rates are due to mature in 2022. There was a spike in five-year fixed rate uptake among landlords in 2016 and 2017 following the Government’s buy-to-let tax relief reforms and the Prudential Regulation Authority’s (PRA) overhaul of portfolio landlord underwriting standards.
It means there will be thousands of landlords due to remortgage this year, costing them thousands of pounds in fees if they opt to switch to another lender.
By taking advantage of Keystone’s enhanced cashback offering, brokers can move their clients onto one of the lender’s competitive fixed rate deals while offsetting some of the costs associated with switching lenders.
Separately, Keystone has split its core (standard, specialist, cashback and green), holiday let and product transfer ranges to make it easier for brokers to find the right deal for their clients.
It means that, from today, there will be separate guides for each product set. Brokers can find each of the product guides by visiting www.keystonepropertyfinance.co.uk.
The lender has also launched a new Agreement in Principle (AIP) certificate, meaning that every time a broker completes an AIP with Keystone, they will receive an email confirmation for their records.
Elise Coole, managing Director of Keystone Property Finance, said: “The Government’s buy-to-let tax reforms in 2016 and the PRA’s decision to overhaul the underwriting rules for portfolio landlords led to a significant spike in the uptake of five-year fixed rate mortgages the following year.
“It means there will be thousands of landlords coming to the end of their deals this year who will either have to remortgage or opt for a product transfer with their current lender, if they offer one.
“By enhancing our cashback offering, we are offering landlords the ability to switch onto a competitive fixed-rate deal with another lender without the significant costs usually associated with remortgaging.
“And as one of just a handful of specialist lenders to offer product transfers, brokers and landlords can rest assured that by choosing Keystone they will be offered a highly competitive rate in the future when their fixed rate period comes to an end.”
Coole added: “We are constantly asking for feedback from brokers to make sure that we are not only offering the products and services that they need, but also that our processes and systems are as efficient as possible.
“That’s why we’ve decided to separate our core range, holiday let and product transfers offerings into three separate ranges, each with their own product guide, which will make it easier for our brokers when looking for the best suitable product on the market.”
