Keystone Property Finance has launched a package of measures to assist borrowers and help them complete their loans amid a surge in swap rates and wider market volatility.

As part of the package, the lender says it will guarantee that any application currently at the post-offer stage will be protected and will proceed on the terms agreed in the offer letter.

Keystone will also launch a range of variable rate products at 65% and 75% loan-to-value (LTV) with rates starting at bank base rate plus 2.65%, effective 4 October. 

The products will be available to new borrowers and borrowers who have already submitted a full mortgage application to the lender but have not yet reached the offer stage.

Borrowers that applied before 27 September will be offered a 50 basis point reduction if they decide to switch to one of the lender’s new variable rate mortgages. 

These borrowers will be offered rates starting at bank rate plus 2.15%, rather than the bank rate plus 2.65% offered to new borrowers. 

In addition to the rate reduction, existing pre-offer applicants will be refunded both the application fee and the valuation fee they have paid on completion. 

Keystone will also offer a new “switch & fix” facility for both new and existing applicants.

This will allow any borrower who opts for a variable rate to switch to an applicable Keystone Property Finance fixed rate product where they are available without having to pay any early repayment charges or application fees.

A Keystone spokesperson says: “We want to reassure brokers that Keystone is well-capitalised and that the unexpected upswing in swap rates and market volatility has contributed to our recent product changes. Brokers can rest assured that we will return to market with a new range of competitive fixed-rate loans when market conditions allow.”

“However, in the meantime, our focus is on ensuring that any borrower who currently has an application with us is provided with the means to complete on their mortgage.”