Keystone to increase proc fee to 0.7%
Keystone will increase the procuration fee on its Classic Range of mortgages to 0.7% of the loan amount to from October 2017.
The lender said the rise recognises the increased workload that will face brokers once the Prudential Regulation Authority’s portfolio underwriting rules come into force on 30 September.
David Whittaker (pictured), chief executive of Keystone, said: “We’ve always focused on the more professional landlord with complex borrowing requirements, so in a sense, it will be business as usual for us as we already take a specialist approach to underwriting.
“However, we are mindful that the PRA has created a clear distinction between portfolio and non-portfolio landlords, and as such, we will have different underwriting policies for both.”
Under the PRA’s new rules the borrower’s full portfolio of properties and outstanding mortgages most be scrutinised.
Whittaker added: “As a lender, it’s important to us that we both acknowledge and reward the additional legwork being undertaken, and we will keep proc fees under review whilst the new processes are bedding in.
“In the meantime, we are working hard to reduce the impact on brokers and landlords. We have some new tools in the pipeline to help streamline the process for brokers and we are determined to ensure that service levels are maintained as the market adjusts to the new environment.”