Keystone launches underwriting policy for portfolio landlords

Jessica Nangle

September 12, 2017

Keystone Property Finance is introducing a underwriting policy for portfolio landlords to comply with guidelines issued by the PRA on the 30 September.

Keystone will require each property within a portfolio to have 100% rental cover and portfolios geared above 80% will not be considered.

Keystone has increased the proc fee paid to brokers by 10 basis points on all classic range cases.

Steve Olejnik, chief operating officer of Keystone, said: “The additional information required from portfolio landlords will of course equate to a much heavier workload for brokers and their clients.

“To ease the process, we are releasing a tool which will enable brokers to convert their clients’ existing portfolio spreadsheets into the format required by Keystone.”

It has always been our aim to try and keep this process as simple as possible, so we hope this tool will be welcomed by both brokers and landlords.”

Applicants with four or more mortgaged properties will be subject to stricter underwriting whether borrowing personally or via a limited company.

PRA guidelines outline how portfolio landlords will have their entire portfolio stressed from the 30 September to ensure it works at 125% at 5.5%, regardless of whether the new application has been made in the name of an individual or limited company.

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