Kensington has issued a guarantee to brokers that it has no plans to pull out of the adverse mortgage market after Investec-backed Infinity announced today that the launch of its new product range has been postponed.
Both Investec-backed Infinity Mortgages and Unity Homeloans have withdrawn their sub-prime mortgage ranges in recent weeks and have yet to reveal new products.
Infinity had originally said they expected to launch a new re-priced range this week but announced today that its launch of a new product range is postponed due to events outside of “Infinity’s control” with offer production also suspended.
Unity Homeloans remains unavailable for comment.
But Kensington, which was acquired by Investec on August 8, says it remains committed to the market.
The lender confirmed last week that it has increased its sub-prime rates by 0.55 per cent.
Kensington chief executive Alison Hutchinson says: “On 8th August Kensington became a wholly owned subsidiary of South African investment bank, Investec and our position in the specialist mortgage market remains one of growth.”
A Kensington spokesman adds: ”Since 1995 Kensington has pioneered lending to borrowers with adverse credit, developing a sustainable proposition, built on pricing for risk, that has proved robust throughout a number of economic cycles. Kensington continues to originate quality assets with its asset performance continuing to improve – bucking the current trend in the UK market and further demonstrating the strength of its risk management.”