Kensington has reduced its maximum loan to value to 75 per cent on its adverse range.
The lender says it is its view that in the short term there will be no institutional investor appetite for portfolios containing high LTV adverse credit mortgages.
It says it has therefore taken the decision to refocus its resources in the short term on its range of prime mortgages and temporarily cap its adverse range at 75 per cent LTV, increasing adverse rates at the same time.
To guarantee its current rates and criteria, applications must be signed, dated and received by close of business on September 21. The new prime rates and new adverse rates and criteria will come into effect on September 24.
Director of marketing Ian Giles says: “As you might expect from an experienced lender like Kensington, in the case of our adverse credit mortgage range, we will continue to protect our long term future through exercising caution in the short term. And, 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.”