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Keystone Property Finance enters holiday let market

Mortgage Introducer

June 28, 2021

holiday lets

Keystone Property Finance has started lending on holiday lets for the first time amid strong demand from landlords and a boom in “staycations”.

Borrowers looking to purchase or remortgage a holiday let within England and Wales can choose from any one of the Keystone’s specialist ranges, with 2-year fixes starting at 3.34% and 5-year fixes from 3.49%.

It also means borrowers have access to the lender’s new green mortgage range, which offers exclusive rates for properties five years and older that have an EPC rating of C or above. The green specialist range starts from 3.24%

Keystone will lend up to 75% LTV on holiday lets for those wanting to borrow up to £750,000 and 70% LTV for those wanting to borrow up to £1m.

To qualify, borrowers must earn a minimum of £40,000 a year, must own one buy-to-let and their property must be furnished. The rental agreement must not exceed six months.

The borrower’s property will be valued, and the rental coverage will be assessed on the same basis as a standard buy-to-let.

Keystone launched its holiday let range following feedback from brokers and is one of the few lenders to offer these types of loans.

Phil Riches, sales and marketing director of Keystone Property Finance, said: “Staycations have always been popular with British holidaymakers but even more so with the restrictions on international travel the past 18 months.

“However, despite the popularity of domestic holidays, there are very few lenders out there offering loans on holiday lets.

“Brokers have been telling us that there is big demand among their client bases for holiday lets and so we decided to do something about it.

“We also wanted to give borrowers a good selection of products to choose from, which is why we have opened up our entire specialist range – including our popular green range – to those wishing to buy or remortgage a holiday property within England and Wales.

“We are confident that demand for home-based holidays is here to stay and we are very excited now to be a part of this fast-growing part of the market.”


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