Kensington has revamped its mortgage products, introducing a new first-time buyer range, five-year fixed rates, lower rates and higher LTVs as part of its strategy to become the intermediary lender of choice.
It has launched mortgages specifically designed for first-time buyers following research among customers and brokers which are aimed at addressing issues many face from not having an extensive credit history which lenders can use for assessing applications.
The first-time buyer loans include a lower fee of £699 and maximum LTV of 85 per cent. Rates for first-time buyers are available from 4.79 per cent for a 2-year fixed rate up to 75 per cent LTV, with a 2-year fixed rate at 85 per cent LTV costing 5.69 per cent.
Charles Morley, head of sales and product development at Kensington, said: “Many first-time buyers do not have extensive credit histories because they have not managed a mortgage in the past. And if they have not used credit cards or taken other forms of credit this may impact their ability to pass a credit score and prove a barrier to securing a mortgage on their first home.”
“At Kensington we make lending decisions based on a customer not a credit score and because we use an experienced team of underwriters alongside our technology, we are able to consider all of an applicant’s circumstances even if they do not have a significant file of historic activity with the credit rating agencies.”
Kensington has increased the maximum LTV on its Prime range to 85 per cent LTV, with rates available from 5.49 per cent for subsequent purchasers and 5.64 per cent for remortgages.
In addition, the lender has reduced rates across its lower LTV brackets, with 2-year fixed rates available from 4.29 per cent up to 60 per cent LTV, 4.59 per cent up to 75 per cent LTV and 5.24 per cent up to 80 per cent LTV. Three-year fixed rate mortgages are available from 4.79 per cent up to 60 per cent LTV, 5.04 per cent up to 75 per cent LTV, 5.74 per cent up to 80 per cent LTV and 5.89 per cent up to 85 per cent LTV.
Kensington has also introduced a number of 5-year fixed rate products to offer peace of mind to customers who are concerned about interest rate rises in the future. These are available on purchase and remortgage business from 5.49 per cent up to 60 per cent LTV, 5.74 per cent up to 75 per cent LTV and 6.44 per cent up to 80 per cent LTV.
And on its Buy to Let range Kensington has introduced a new set of products available up to 70 per cent LTV, with rates starting from 4.79 per cent for a 2-year fixed rate and 5.29 per cent for a 3-year fixed rate.
Morley added: “Kensington mortgages are designed with real people in mind so we have conducted research with real customers to identify areas where we can improve our proposition and acted on that research, with more competitive pricing and innovative products that align to our principals of responsible and sustainable lending. Our aim is to become the intermediary lender of choice and this launch is an important step on the way to that goal.”
