Kensington returns to lending
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Intermediary lender Kensington has resumed new lending with a prime mortgage through Legal & General, Pink Home Loans and Openwork.
The Investec-owned lender once lent to sub-prime and self-cert borrowers, but had to withdraw from new lending in late 2008 when wholesale funding dried up as a result of the credit crunch.
It has now launched a two-year income verified fixed rate up to 65 per cent LTV. The rate is 5.69 per cent and the arrangement fee is £1,299.
Although the product is described as prime, it may allow borrowers with County Court judgments, arrears or defaults that are from more than two years ago.
Kensington head Keith Street says: “Kensington has returned to the intermediary mortgage market, offering prime products through a controlled distribution.
“The whole landscape of our industry has changed in the past two years and we have evolved to meet those changes.”
He adds: “Market recovery will not happen overnight and, as you might expect, we need to maintain a cautious approach. We remain committed to intermediaries and are dedicated to supporting the benefits of professional financial advice and clear information to assist customers in selecting the right mortgage for their needs.”
L&G director of mortgages Ben Thompson says: “The return of Kensington is great news and we’re pleased to be working with them. This is an indication that lenders who have been on the sidelines now want to get back in on the action where possible.”
He adds: “The fact that the market sees opportunities is very encouraging indeed, and whilst it is important not to overplay this, we welcome an increase in the supply of credit to help get the lending market moving again. There is evidence of an increasing level of variety and choice amongst mortgage products and this is good new for house purchasers and remortgagers.”
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