Keystone welcomes first-time landlords
The lender is also lending on new build flats, allowing up to six multi-units on freehold property and accepting HMOs with up to 10 bedrooms.
David Whittaker, managing director of Keystone Buy to Let Mortgages, said: “We talked over the proposed change with our funding partners, Aldermore Bank, and decided that increasing demand from those looking to get into residential property investment was an opportunity not to be missed.
“However, in order to ensure some level of experience in managing mortgage finance and/or property, the criterion comes with the stipulation that first-time landlords must also own their own home (or another property).
“Clearly, with the current housing shortage and more prudent lending environment, there is no reason why new-build flats shouldn’t be adequate security, particularly in strong city locations.”
Previously Keystone only lent to experienced landlords, while it viewed new build flats as too risky because of over-supply and over valuations pre-credit crunch, although it has lent on new build homes since 2012.