Kensington has become the latest lender to announce that it is repricing its adverse core range despite denying last week that it would follow other lender’s moves.
Kensington says it will be increasing the cost of its products by 0.55 per cent. The current range will be available until close of play on August 23 with the new range introduced on August 24.
This follows recent moves by GMAC-RFC and Mortgages PLC, with Edeus stating it will also reprice this week. Investec-backed Unity Homeloans and Infinity Mortgages temporarily withdrew their sub-prime products from the market last week, following DB Mortgages earlier move.
A Kensington spokesman says that due to cost of funding increasing it has had to reflect it into its pricing.
Kensington said last week that it was definitely not withdrawing its products from the market stating that it was dedicated to the market.
A spokesman said: “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 our asset performance continuing to improve – bucking the current trend in the UK market and further demonstrating the strength of risk management. “
“We remain committed to the specialist mortgage market, including adverse credit, self-cert and buy to let. As one of the proven, experienced high-quality lenders in this sector and under new ownership of Investec, the market can expect more from Kensington.”