Saturday, February 24, 2024
Finance

Keystone Property Finance increases cashback on large loans

Keystone Property

Keystone said these changes were made in preparation for the maturities of buy-to-let mortgages this year

Keystone Property Finance has increased the cashback incentive offered on large loans by as much as 50 per cent for landlords purchasing or remortgaging.

Landlords will now receive £1,250 back on mortgage loans between £150,000 and £400,000, up from £1,000 previously.

For those who borrow between £400,001 and £750,000, they will receive £2,000 up from £1,500. Landlords taking out mortgage loans between £750,001 and £1m will get £3,000, up from £2,000.

Keystone said these changes were made in preparation for the maturities of buy-to-let mortgages this year. It said for those remortgaging onto a new lender, the costs could reach into the thousands and therefore the cashback could offset expenses.

Elise Coole, managing director of Keystone Property Finance, said: The government’s buy-to-let tax reforms in 2016 and the Prudential Regulatory Authority’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, she said.

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, she said.

The lender has also split its core ranges by type, meaning there are now separate guides for standard, specialist, cashback, holiday let, green mortgages and product transfers.

Additionally, it has launched an agreement in principle (AIP) certificate, meaning every time a broker completes an AIP with Keystone, they will receive an email confirmation for their records.

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