Keystone Property Finance Launches Semi-Commercial Lending Range: What London Landlords Need to Know

Keystone’s New Semi-Commercial Lending: A Practical Overview for Landlords

Keystone Property Finance has launched a semi-commercial lending range tailored to landlords owning or investing in Houses in Multiple Occupation (HMOs), holiday lets, and other semi-commercial residential properties. With fixed interest rates starting at 7.14% and loans up to £2 million, these products support both purchases and remortgages. A key feature is that affordability assessments are based solely on residential rental income.

Why This Matters to London Landlords

London’s buy-to-let market is diversifying, with many landlords investing in HMOs and holiday lets to boost returns. Traditional buy-to-let mortgages often exclude or limit lending on these property types. Keystone’s new lending range fills this gap, offering finance designed specifically around semi-commercial income profiles.

The product is available to individual landlords and those using limited companies, Special Purpose Vehicles (SPVs), or LLPs, adding flexibility for various ownership structures common in London.

Practical Implications for Finance and Compliance

• Affordability Assessment: Keystone requires clear documentation of residential rental income, including tenancy agreements, rent statements, and evidence of consistent payments. Aggregated rental income from multiple units, such as in HMOs, should be clearly presented.

• Loan Terms and Rates: Fixed rates start at 7.14%, which landlords should compare against current mortgages and market benchmarks. The £2 million maximum loan suits both single-property and portfolio landlords.

• Ownership Structures: The loan availability to individuals, companies, SPVs, and LLPs widens access, although corporate borrowers may face more complex documentation and financial checks.

• Purchase and Remortgage: Both new purchases and remortgages qualify. Landlords preparing to refinance should ensure comprehensive financial records to meet lender criteria.

Tailored Considerations for Landlord Profiles

• Single-Unit Landlords: Those with a single HMO or holiday let may secure dedicated finance without needing commercial lending, which often has higher rates.

• Portfolio Landlords: Multiple-property owners can leverage the £2 million loan cap to consolidate or grow holdings, provided rental incomes are well documented.

• Accidental Landlords: Those who unexpectedly own semi-commercial properties should seek financial advice to determine if this lending suits their financial and compliance needs.

Recommended Next Steps

1. Review Rental Income Documents: Gather tenancy agreements, rent rolls, and payment histories for all semi-commercial properties.
2. Assess Financial Position: Compare Keystone’s fixed rates and loan limits with your current mortgage terms and investment goals.
3. Consult Specialist Brokers or Advisers: Engage professionals experienced in semi-commercial lending for tailored eligibility assessments.
4. Inform Letting Agents: Ensure they understand Keystone’s products to better support landlord clients.
5. Prepare Application Materials: Maintain complete and accurate financial records to meet Keystone’s affordability assessment.

How Rentals & Sales Can Support You

We specialise in assisting landlords navigating lending and compliance challenges. Our services include portfolio reviews, compliance audits, and pricing strategy consultations designed to enhance returns while ensuring regulatory compliance. Contact us to explore how Keystone’s semi-commercial lending suits your portfolio and how we can assist with application and ongoing management.

Compliance Disclaimer: This article is for informational purposes and does not constitute financial advice. Always consult qualified mortgage brokers or financial advisers before committing to lending products.