Kensington has launched its first two- and three-year capped trackers.
Initial rates for 80 per cent LTV two-year capped tracker deals are 4.09 per cent with a 5.74 per cent cap in the event of rates rising, falling to an initial rate of 3.34 per cent for 75 per cent LTV and 3.14 per cent for 60 per cent LTV with caps at 4.99 per cent and 4.79 per cent respectively. The mortgages track LIBOR and applications are individually assessed.
Charles Morley, head of sales at Kensington, said: “The launch into capped trackers addresses growing concerns about rate rises and delivers a combination of competitive rates and peace of mind for borrowers.
“Research among existing customers and brokers demonstrated a demand for further innovation in our product range and our capped trackers offer a realistic cap to help guard against rising rates, which we believe will fill a gap in the market where few lenders are offering a solution.
“Maintaining our focus on competitive pricing and innovative products aligned to our principles of responsible, sustainable and intelligent lending is a further step in our aim to become the intermediary lender of choice by providing real solutions for real people.”
