Kensington has launched a range of two and three-year capped trackers, with initial rates starting from 3.14 per cent.
Initial rates for 80 per cent loan-to-value two-year capped tracker are 4.09 per cent with a 5.74 per cent cap. For a 75 per cent LTV two-year product the initial rate is 3.34 per cent with a 4.99 per cent cap, and 3.14 per cent for a 60 per cent LTV product with a 4.79 per cent cap.
The mortgages track Libor and are individually assessed by Kensington’s underwriters.
Head of sales Charles Morley says: “The launch into capped trackers addresses growing concerns about rate rises and delivers a combination of competitive rates and peace of mind for borrowers.
“Research among existing customers and brokers demonstrated a demand for further innovation in our product range and our capped trackers offer a realistic cap to help guard against rising rates, which we believe will fill a gap in the market where few lenders are offering a solution.”