View more on these topics

Kensington cuts adverse LTV as it looks to prime loans

Pioneering non-conforming lender Kensington has reduced its adverse maximum loan to value to 75 per cent as it swit-ches focus to prime mortgages.

The firm says it believes that in the short term there will be no institutional investor appetite for portfolios with high LTV adverse credit mortgages.

Kensington says it is refocusing its resources in the short term on its range of prime loans.

Director of marketing Ian Giles says: “With the success we have already had with our range of prime self-cert and buy-to-let mortgages since launching them late last year, it makes sense to refocus our resources on the prime sector until investor appetite for higher adversity mortgage portfolios returns.”

Personal Touch Financial Services sales director Dev Malle says it is going to be a difficult market for Kensington to operate in. He says: “In the 75 per cent LTV arena, you have got some of the big guns playing such as Abbey and HBOS. It is a big call for them but I think it is just for the interim.”

Both GMAC and Edeus say they have no plans to follow Kensington’s lead. This comes despite GMAC-RFC alerting packagers a few weeks ago that it was considering reducing LTVs to 75 per cent, a move it later decided against.

Recommended

We’re joining Aifa as it’s doing a great job

RH Investment Service has decided to join Aifa as it feels this is the best industry body to look after the interests of the majority of the IFA community. Aifa are doing a sterling job in representing IFAs’ views with regard to the retail distribution review. We have two approved persons and £370 is a […]

Parting thoughts

Marriage breakdown can be a testing time for financial advisers as well as the estranged spouses, says Informed Choice managing director Nick Bamford, as he poses questions for advisers to assess their knowledge on pensions and divorce

When is £1m not £1m?

Neil Jones is technical support manager with Canada Life’s ican Technical Services Team. Canada Life offers a range of wealth management solutions, including retirement income planning, estate planning and investment solutions from a choice of jurisdictions, including the UK, Isle of Man and Republic of Ireland. The residential nil-rate band (RNRB) was first announced in […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment