Keystone Property Finance should enable landlords to request a further advance in addition to one of the lender’s product transfer (PT) products.
The specialist buy-to-let lender’s new PT Plus range reflects the rates offered in the existing PT range.
Fixed rates for two and five years are available, with a maximum LTV of 80%, with arrangement costs of 1.5% or 3.5%.
The size of the further advance will be determined by an affordability assessment, with both individual and limited company applications acceptable.
The borrower must submit his application through an intermediary, which protects the advisor’s relationship with his client. Keystone will also pay a proxy fee of 0.55% on the total loan.
All applications require a physical appraisal, but that cost is borne by Keystone and not the borrower.
Borrowers should also seek independent legal advice for limited company applications. This can be done via Keystone through ILA Law for £175+VAT per driver or independently.
Keystone director Elise Coole explains: “There are many good reasons to choose a product transfer. That’s why these have become so popular with borrowers in recent years. However, one of the downsides is that they are like-for-like transactions, meaning 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 loan.”
She added: “This creates unnecessary complications and costs. By offering further advances on PT business, we offer landlords a cost-effective and hassle-free way to free up additional capital. The application process for our new PT Plus range will also be as streamlined as a regular PT application, meaning there are minimal documentation requirements.”