Buy-to-let mortgage lender Keystone has launched a new mortgage range for landlords after switching its funding partner to peer-to-peer (P2P) lender Landbay.
Keystone, which previously worked with Aldermore, has reduced rates on the new products by between 0.4 and 0.6 percentage points and has cut fees by 0.5 percentage points.
The new mortgage range, which replaces Keystone’s core products formerly provided by Aldermore, also has lower arrangement fees.
Pricing starts at 4.75 per cent for tracker-rate products and at 4.99 per cent for a five-year fixed rate mortgage. The range is available to landlords looking for finance both personally and in a limited company capacity.
Key features include rates up to 80 per cent loan-to-value (LTV) and products specifically for houses in multiple occupation (HMOs) and multi-unit property.
For landlords who take out a mortgage from the new Keystone range, Landbay will open a lending account with a complimentary “welcome bonus” of £100.
John Goodall, CEO and co-founder of Landbay, commented:
“As buy to let landlords, our borrowers are well aware of the strong fundamentals of the private rented sector and the attractive, stable returns available. Our Welcome Bonus offers them an introduction into accessing the rewards of this market as a lender, allowing them to earn meaningful interest on any additional funds even while bank deposit rates are at historic lows.”
The Landbay P2P lender account provides investors with two options: a fixed rate of 4.4 per cent annualised interest and a tracker rate of 3.5 per cent interest (bank base rate (BBR) + 0.5 per cent).
As an intermediary-only lending brand, brokers too will benefit from the New Classic Range as procuration fees have been increased to 0.5 per cent of the loan amount and will be paid promptly on the day of completion.
