Specialist buy-to-let (BTL) lender Keystone Property Finance has reduced rates across its product range, offering standard fixed rate mortgages from 4.14%.
The largest reductions were made to the expat range, which was cut by up to 0.65%, starting from 5.49%.
Keystone also reduced its standard and specialist products for houses in multiple occupation (HMOs) and multi-unit freehold blocks (MUFBs) up to 15 occupants or units, by up to 0.55%.
In addition, Keystone removed the 5.5% and 7% arrangement fee products on its 5-year fixed rates.
These deals were introduced to allow landlords to achieve higher levels of affordability when mortgage rates were high, but the lender reported that they were no longer needed in light of recent rate reductions.
Keystone introduced a 3% arrangement fee offering to its product transfer range, with rates starting at 4.89%.
Elise Coole, managing director at Keystone Property Finance, said: “It’s great to be able to kick the New Year off with a series of significant rate reductions and to offer products starting from 4.14%.
“In the past month Swap rates have come down significantly, which has allowed us to make sizeable reductions across our range.
“Nobody can know for how market conditions will evolve in the coming year, but we’ll continue to pass on any rate reductions as a result of our funding structures as soon as we are able to do so.
“We have also decided to remove our 5.5% and 7% arrangement fee tiers.
“For a while last year, these products were a useful tool in brokers’ armoury because they allowed landlords to achieve higher levels of leverage in a higher mortgage rate environment.
“But now that mortgage rates have fallen significantly over the past few months, they have served their purpose and I feel that currently they are no longer a vital part of our offering.”