Keystone managing director Elise Coole says: “Over the past few months we have been very active in improving our range to ensure we not only have the best possible rates available but also that we provide solutions to suit a wide range of landlords. Keystone has also cut its two-year standard and specialist 65% LTV deals by five basis points, meaning that lender’s two-year and five-year mortgages now start at 5.19% and 5.49%, respectively. Its two and five-year product transfer and switch and fix rates have come down by the same amount. Loan origination fees and costs associated with loans held-for-sale should be deferred and included as part of the loan balance until the loan is sold. Meanwhile, the specialist buy-to-let lender has reduced its five-year standard, specialist, ex-pat and holiday let products by 10 basis points. The new arrangement fee options include a 5.49% five-year fix at 65% and a 5.59% five-year deal at 75%, available on loans up to £2m and £1.5m, respectively. Normally, you can choose whether you want to pay the arrangement fee upfront or whether to add it to your loan. Some lenders will even calculate your arrangement fee based on a percentage of the mortgage you’ve applied for. An easy way to do the accounting in the preparation of the amortization schedule is as below, Year. The average arrangement fee varies from no fee to around £2,000. So, this amount will be paid each year to the lender. The coupon payment for the 5 amounts to 500,000 (10m5). The specialist lender’s 7% arrangement fee products come with lower rates than its other five-year fixed rates, allowing landlords to borrow more than if they were to take out a product with a higher rate but lower fee. It’s important to understand that 5 is a coupon rate, and the annual payment needs to be made annually. Keystone Property Finance has introduced a new range of products with 7% arrangement fees and cut its rates by up to 10 basis points.
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