From 1^st October 2017, the specialist lender will increase the fee by 10 basis points in recognition of the greater workload that brokers will have to undertake due to the PRA’s new guidelines on underwriting buy-to-let mortgage applications from portfolio landlords.

David Whittaker, CEO of Keystone, said: “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.

•   Landbay introduces retention proc fees
•   Aldermore to launch retention procuration fees
•   Are relationships in the bridging market damaging to the borrower?

“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.”

The increased proc fee will be applied to all classic range cases, even if the client does not meet the portfolio status definition.

David added: “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 while the new processes are bedding in.

“In the meantime, we are working hard to reduce the impact on brokers and landlords.

“We have some new tools in the pipeline to help streamline the process for brokers and we are determined to ensure that service levels are maintained as the market adjusts to the new environment.”

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