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Kensington returns to 85% LTV on residential lending

Kensington Mortgages has reintroduced lending at 85 per cent LTV across all residential products.

Its return to the LTV tier comes alongside cuts to rates and relaunches across its residential and buy-to-let ranges.

The specialist lender has cut rates up to 0.4 percentage points across its residential product range, with an additional reduction of 0.2 percentage points on its residential ‘Hero’ range.

The ‘Hero’ range is targeted towards borrowers such as paramedics, nurses and teachers, with rates starting at 3.09 per cent for a two-year fix at 75 per cent LTV.

Meanwhile, the residential ‘Select’ range, which the lender describes is for borrowers who “don’t quite fit the high street”, starts at 1.99 per cent for a two-year fix at 70 per cent LTV and 3.84 per cent for a two-year fixed rate at 85 per cent LTV.

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The maximum loan amount on the residential Select range has also increased from £750,000 to £850,000. For buy-to-let applicants, meanwhile, the maximum loan amount has risen from £500,000 to £750,000.

Rates across buy-to-let have reduced by up to 0.3 percentage points, starting at 3.59 and 3.94 per cent for a two- and five-year fix respectively at 75 per cent LTV.

The lender has also relaunched its ‘eKo’ residential mortgage, offering £1,000 cashback to borrowers who increase the energy efficiency of their home.

Craig McKinlay, new business director at Kensington Mortgages, said: “We’re committed to helping borrowers at every life stage. This means providing tailored products and our latest re-launches open up new opportunities for our intermediaries and their clients.

“Our rate cuts reinforce our commitment to helping borrowers who are underserved and undervalued by high-street lenders and we’re confident these latest offerings will be welcomed.”

Ayodele Johnson, principal at Johnson Adviser, commented: “This is welcomed news to the mortgage broking industry both for advisers and clients. It comes at a time when it is needed the most.

“Kensington Mortgages have always been known to champion niche areas such as contractors, sole traders, adverse credit history and limited company portfolio landlords. Reducing their rates brings them back in line with some of their competitors.”

By Chloe Cheung

Source: FT Adviser

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Lender raises £400m mortgage funding

Specialist lender Kensington Mortgages has raised £400m of funding through the wholesale financial markets.

The deal, which was announced to the market last week (June 17), was one of the first residential mortgage-backed securitisations (RMBS) to be sold to investors since the onset of the coronavirus crisis, according to the lender.

RMBS consist of bundles of mortgage loans, which are sold on as bonds to investors. The securities were purchased by global institutional investors.

Kensington said it will use the funds to support complex and underserved borrowers get on the property ladder.

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Alex Maddox, capital markets director at Kensington Mortgages, said: “The global financial markets are a hugely important source of funds for the UK housing market.

“While everyone assumes that the flow of money supporting British housing is all about the big banks, that’s not been true for many years.

“About 20 per cent of the cash underpinning UK house purchases is coming from pension funds and debt investors around the world.

“At the start of the Covid-19 pandemic, the Bank of England was quick to ensure that funding was made available to banks and building societies so they could keep lending – which was welcome. With wholesale markets reopening, non-bank lenders such as ourselves can play a more active role in the market again, and help more people towards a house purchase.”

Kensington Mortgages is a specialist lender that offers mortgages to those who find it difficult to borrow from high street lenders.

By Chloe Cheung

Source: FT Adviser

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Kensington Mortgages launches 80% LTV residential rates

Kensington Mortgages has resumed 80% loan-to-value (LTV) lending across its residential Select, Core, Young Professional and Heroes ranges, as well as relaunching Help To Buy and buy-to-let (BTL) purchase applications across England.

On Kensington’s Select, Heroes and Young Professional range, rates start from 4.49% for a 2-year fix at 80% LTV and 4.64% for a 5-year fix rate.

There is a maximum loan amount of £750,000 on the Select range, and £500,000 for Core, Right to Buy and BTL products.

Kensington Mortgages has also relaunched its Help to Buy offering and reinstated new-build applications.

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Rates start from 4.54% for a 2-year fix at 75% LTV.

In England, now that physical valuations can take place, BTL purchase applications have been resumed.

Last month, Kensington relaunched BTL remortgage cases; the same rates apply for new purchase applications.

Rates start from 4.49% for a 2-year fix at 75% LTV and 4.69% for a 5-year fix.

Craig McKinlay (pictured), new business director at Kensington Mortgages, said: “We’re excited to introduce 80% LTV across some of our most well-known product ranges and relaunch Help to Buy in the hope that we can try to provide options for those wishing to step onto the property ladder.

“Over the last few months we have experienced an industry-wide unprecedented challenge, and lenders have been working hard to reintroduce product ranges to try and help boost the market.

“We hope these new updates provide our brokers and customers with accessible funding options and greater choice and for those that can restart their housing plans again, we are here to help.”

By Jessica Bird

Source: Mortgage Introducer