Keystone Buy to Let Mortgages has secured a new funding line with peer-to-peer lender Landbay and plans to ramp up its lending.
Mortgages for Business managing director David Whittaker resurrected the Keystone brand in April 2012 after securing a three-year funding line from FTSE 250 new entrant Aldermore.
That deal has now come to an end, with the pair having lent just under £200m in those three years.
However, Whittaker has secured a new funding arrangement with Landbay and has relaunched Keystone’s Classic Range with cheaper rates. Keystone has also increased proc fees by 10 basis points to 0.5 per cent.
In an interview with Mortgage Strategy this week, Whittaker says the agreement will be for 18 months initially and he hopes to lend £150m over the next year – more than double what Keystone was lending each year with Aldermore.
Whittaker says: “This new funding line with Landbay takes Keystone to its next stage of growth and expansion. We’re really excited at the prospects over the next 18 months.”
While the Aldermore agreement has come to an end, Whittaker says the parting was amicable.
He says: “[Aldermore] is now a bank with very big aspirations, lots of projects in its mind, lots of ambitions, and what was quite an important project to it was probably less important in its overall aspirations than it might have been when we set off on the journey.”
Landbay, a lender in its own right, will use the funds it receives from depositors to fund Keystone’s lending. Paratus, the firm behind Foundation Home Loans, will manage the loans and Keystone’s warehouse facility.
Keystone was born in 2007 with Bradford & Bingley supplying the funding. However, in 2008 B&B folded followed by Keystone, having lent £200m together.
Keystone offers a range of fixed- and discounted-rate buy-to-let mortgages for mainstream, HMO and multi-unit properties available to both individual and limited company borrowers.