Keystone Property Finance has expanded its specialist buy-to-let proposition by launching a semi-commercial lending range for the first time.
The move enables the lender to support landlords purchasing or refinancing properties that combine residential and commercial elements, marking a further expansion beyond its traditional buy-to-let offering.
The launch follows the introduction of Keystone's Refurb to Let range last year and represents the lender's second move into a new market segment within the past 12 months.
New semi-commercial lending products
The semi-commercial lending range includes a selection of two and five-year fixed-rate products, with rates starting from 7.14%.
Products are available for both purchase and remortgage applications, with maximum loan sizes of up to £2m.
Keystone will lend against the entire property, while affordability assessments will be based solely on the residential rental income generated by the asset.
The lender's criteria cover a broad range of mixed-use property types, including standard residential units above commercial premises, houses in multiple occupation (HMOs), multi-unit freehold blocks (MUFBs), and holiday lets.
The products are available to individual borrowers as well as limited companies, trading limited companies, special purpose vehicles (SPVs) and limited liability partnerships (LLPs).
The lender said the launch reflects changing landlord demand, with investors increasingly exploring alternative property types in pursuit of stronger returns and portfolio diversification.
"This is a really exciting expansion for Keystone," said Elise Coole, managing director at Keystone Property Finance (pictured).
"We already have one of the most comprehensive product ranges in the specialist buy-to-let market, but we're always in dialogue with brokers about where the gaps are."
"What we've heard consistently is that landlords are increasingly looking beyond traditional buy-to-let in search of stronger yields and greater diversification, yet semi-commercial remains underserved by lenders relative to the demand that's out there.
"That's why, over the past twelve months, we've made two significant moves into new segments – first Refurb to Let and now semi-commercial. Both have been driven by clear, broker-led demand and reflect our commitment to expanding where brokers genuinely need more support."
Coole said the launch builds on the lender's existing specialist proposition while providing brokers with another option for mixed-use property transactions.
"This is a natural progression for Keystone and we're proud to offer brokers another option in this space," she added. "As with our core buy-to-let range, brokers can expect from us the sort of straightforward, common-sense underwriting they need to place cases with confidence.”
