"The reduction in rates means that we are now able to better compete on pricing, particularly with five year fixes. Brokers will be particularly pleased that we have been able to up the procuration fee to 0.6% of the loan."
Keystone has also announced a number of criteria changes. The maximum number of units in a multi-unit has been increased from four to six, and the maximum lending exposure is now £1m.
Additionally, minor unsecured credit will now be considered.
Keystone has also launched its new online broker portal - Keystone Application Submission System - which will speed up case processing and allow brokers to track the stages of every deal.
Alongside the reduction in rates, Keystone has increased its procuration fee on its Classic Range from 0.5% to 0.6%.
Keystone recently announced the introduction of separate stress tests for individual and limited company borrowers applying for products in the Classic Range which is funded by Paratus AMC.
For individuals the new formula of 145% at pay rate or notional rate of 5.25%, whichever is higher, will be applied to term trackers and 3 year fixed rates. For borrowers choosing a 5 year fixed rate, the pay rate will be used.
Stress tests for limited companies are to remain at 125% of pay rate or notional rate of 5.25%, whichever is higher, for term trackers and 3 year fixed rates. For limited company borrowers choosing 5 year fixed rates, the pay rate will be used.
Managing Director, David Whittaker, said: “Despite the Brexit result, its business as usual at Keystone and as you can see we have been very busy. The reduction in rates means that we are now able to better compete on pricing, particularly with five year fixes.
“Brokers will be particularly pleased that we have been able to up the procuration fee to 0.6% of the loan.”
