View more on these topics

Keystone hikes proc fees to 0.7% ahead of PRA changes


Keystone will raise buy-to-let procuration fees to to 0.7 per cent to recognise the extra work brokers will need to do for portfolio landlord applications.

The lender currently pays 0.6 per cent to directly-authorised brokers, though some network brokers get slightly more.

The lender will make the changes from 1 October to its classic range.

From October, lenders will have to adopt a specialist underwriting approach, including gathering more detailed information than before.

Keystone chief executive David Whittaker says: “We’ve always focused on the more professional landlord with complex borrowing requirements, so in a sense, it will be business as usual for us as we already take a specialist approach to underwriting.

“However, we are mindful that the PRA has created a clear distinction between portfolio and non-portfolio landlords, and as such, we will have different underwriting policies for both.”

Whittaker says this will mean Keystone may request more detailed information from portfolio landlords to help make the best lending decision.

He adds: “For brokers this will mean that they will have to spend considerably more time working closely with their clients to collect and collate the necessary paperwork before being able to submit a case.

“As a lender, it’s important to us that we both acknowledge and reward the additional legwork being undertaken, and we will keep proc fees under review whilst the new processes are bedding in.”

A Keystone statement says the increased proc fee will be applied to all classic range cases even if the client does not meet the portfolio status definition.

The PRA defines a portfolio landlord as a borrower with four or more distinct mortgaged buy-to-let properties, either together or separately, in aggregate.

Keystone will make further announcements on the new PRA requirements for portfolio landlords before 1 October.



Lenders need to walk the walk with retention proc fees: Hunt

The time for prevarication on retention proc fees is over. Those that continue not to pay risk looking like dinosaurs My colleague, John Coffield, recently made headlines when he appeared on the expert panel at last month’s FSE Wales exhibition. John was asked to talk about the payment of procuration fees by lenders, especially their […]


Aldermore reveals portfolio buy-to-let approach

Aldermore has revealed how it will approach lending to portfolio landlords when new Prudential Regulation Authority underwriting rules are rolled out in September. Aldermore will split portfolio landlords into two categories to determine what further information needs to be provided to underwrite the individual case. Standardised templates will be available for each of the information […]


News and expert analysis straight to your inbox

Sign up

Why register with Mortgage Strategy?

Mortgage Strategy continues to be the market-leading B2B mortgage publication in the UK, and provides trusted, independent insight with the aim of helping, promoting and analysing the latest developments for mortgage professionals.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Mortgage Strategy Events
Be the first to hear about our industry leading conferences, awards, webinars and more.

Research and insight
Take part in and see the results of Mortgage Strategy's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now