"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."
- Elise Coole, managing director of Keystone
Keystone Property Finance has launched a new offering which allows landlords to apply for a further advance alongside a product transfer.
The lender’s new PT Plus range mirrors the rates offered in its existing product transfer range.
Two and five-year fixed rates are available, with a maximum LTV of 80% and arrangement fees of 1.5% or 3.5%.
The size of the further advance is determined by an affordability assessment with both individual and limited company applications acceptable.
The borrower must submit their application via an intermediary, meaning that the adviser’s relationship with their client is protected. Keystone will also pay a procuration fee of 0.55% on the total borrowing.
A physical valuation will be required for all applications, with Keystone covering the cost, and borrowers must also seek out independent legal advice for limited company applications.
Elise Coole, managing director of Keystone, said: “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.
“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.
“This creates unnecessary complication and cost. By offering further advances on product transfer cases, we are offering a cost-effective and hassle-free way for landlords to release extra capital. The application process for our new PT Plus range will also be as streamlined as a regular product transfer application, meaning there are minimal documentation requirements.
“The ability to release extra capital with a product transfer is something brokers have told us was sorely needed in the market – so we have acted on that. As a lender, we recognise the value of the advice that brokers give to their clients which is why we require all applications to be submitted via an intermediary and pay a competitive 0.55% proc fee to reflect this.”
