Keystone Property Finance Brings Back Fixed Rates: What London Landlords Need to Know

Keystone's Fixed Rates Return: A Timely Opportunity for London Landlords

Keystone Property Finance has officially reintroduced fixed rate buy-to-let mortgage products after a pause caused by recent market fluctuations. Starting at 3.54% for 70% loan-to-value (LTV) deals, landlords can now access two- and five-year fixed terms alongside two-year tracker options. Furthermore, the new Switch & Fix facility allows borrowers to convert tracker mortgages to fixed rates following Easter, adding valuable flexibility.

Why This Matters: Stability Amid Market Volatility

For London landlords managing tight rental margins, mortgage cost certainty is vital. The return of Keystone’s fixed rates allows landlords who currently have tracker mortgages to lock in predictable repayments, protecting their portfolios from potential interest rate increases. This comes at a crucial time given ongoing economic uncertainties and Bank of England base rate adjustments.

What This Means for Different Landlord Types

• Single-Unit Landlords: Benefit from straightforward fixed rate deals to stabilise monthly outgoings and ease budgeting.
• HMO Operators: Fixed rates can help manage cash flow predictably across multiple mortgages, especially if margins are tight.
• Portfolio Landlords: Should evaluate the impact of switching multiple tracker mortgages to fixed rates, balancing switch costs against long-term savings using the Switch & Fix facility.
• Accidental Landlords: Fixed rates can reduce stress and provide financial predictability, aiding smoother management.

Practical Steps for London Landlords

1. Review Your Current Mortgage Details: Gather information on rates, terms, and any early repayment penalties.
2. Consult Your Mortgage Broker or Keystone Directly: Understand eligibility and application processes for fixed and tracker products.
3. Evaluate the Switch & Fix Facility: If on a tracker mortgage, consider switching post-Easter to a fixed rate for greater stability, factoring in any fees.
4. Run Cash Flow Scenarios: Use rental income data to compare repayment options and align with your financial goals.
5. Stay Informed: Monitor Keystone’s updates for deadlines or product changes to ensure timely decisions.

Benchmarking and Local Considerations

Keystone’s fixed rates begin at 3.54% for 70% LTV, but rates vary depending on loan parameters. London landlords should compare these rates against other lenders and consult mortgage brokers experienced in the London market to find realistic benchmarks tailored to their portfolios.

Next Conversations to Schedule

• Mortgage Review: Arrange a meeting with your broker within two weeks to explore Keystone’s product offerings.
• Financial Planning: Consult your accountant or financial adviser to update your cash flow forecasts based on possible mortgage switches.

Supporting Your Journey

Our Landlord Intelligence Hub provides bespoke portfolio reviews and compliance audits to help align your mortgage strategy with your operational and regulatory needs. We assist you in evaluating refinancing options and adopting rent pricing strategies that reflect your updated cost base.

Compliance note: This article provides general information and does not constitute financial advice. Always seek independent mortgage advice tailored to your circumstances before making refinancing decisions.