First-time landlords are now accepted, including those operating in Scotland. Since launch Keystone has been a lender for the experienced landlord but in response to feedback from brokers it has opened up its rates to first-time investors.
Commenting on this criterion change, David Whittaker, managing director of Keystone Buy to Let Mortgages said:
“We talked over the proposed change with our funding partners, Aldermore Bank, and decided that increasing demand from those looking to get into residential property investment was an opportunity not to be missed. However, in order to ensure some level of experience in managing mortgage finance and/or property, the criterion comes with the stipulation that first-time landlords must also own their own home (or another property).”
The second change is the introduction of new-build flats into the lending criteria. Previously they had been deemed a high risk because of over-supply and over-valuation pre-credit crunch. New-build houses on the other hand, have been a part of lending policy since launch in 2012.
David Whittaker said:
“Clearly, with the current housing shortage and more prudent lending environment, there is no reason why new-build flats shouldn’t be adequate security, particularly in strong city locations.”
The other improvements to Keystone’s lending criteria are the increase of multi-units from four to six in one freehold property and HMOs will now be accepted with up to 10 bedrooms
