The launch follows the announcement yesterday that Keystone’s contract with Aldermore has ended after three successful years.
David Whittaker, managing director of Keystone, said: “When looking for a partner, we were keen to work with a lender that is both forward-thinking and innovative. In a short space of time, Landbay has built a very compelling underwriting capacity that provides the kind of rapid response and high quality service that are absolutely vital to Keystone’s offering.
“The first P2P lender to focus solely on buy to let, Landbay’s innovative approach is aligned to Keystone’s lending ambitions. The New Classic Range will appeal to brokers and landlords and we expect to lend c£200m next year through this funding line.”
The New Classic Range which replaces Keystone’s core products formerly provided by Aldermore, is more competitively priced with the added benefit of lower arrangement fees. Pricing starts at 4.75% for a term tracker and 4.99% for a five year fixed rate. The range is available to landlords looking for finance both personally and in a limited company capacity.
Key features include rates up to 80% LTV and products specifically for HMOs and multi-unit property.
Landbay, working closely with its servicer Paratus AMC, will finance the Keystone products entirely with an institutional funding line.
Whittaker added: “Landlords borrowing from the New Classic Range will also benefit from Landbay’s innovative £100 Welcome Bonus which enables borrowers to become lenders.”
When a landlord takes out a mortgage in the New Classic Range, Landbay opens a lending account with a complimentary £100 for the landlord.
John Goodall, CEO and co-founder of Landbay said: “As buy to let landlords, our borrowers are well aware of the strong fundamentals of the private rented sector and the attractive, stable returns available. Our Welcome Bonus offers them an introduction into accessing the rewards of this market as a lender, allowing them to earn meaningful interest on any additional funds even while bank deposit rates are at historic lows.”
The Landbay P2P lender account provides investors with two options: a fixed rate of 4.4% annualised interest and a Tracker Rate of 3.5% interest (BBR + 0.5%). 2
Procuration fees have been increased to 0.5% of the loan amount and are paid on the day of completion.