Kensington has confirmed it will be re-pricing and changing its criteria for its adverse range but will announce the exact details next week.
The lender says its adverse range will be re-priced and its criteria changed on September 7 and has sent an email around to brokers in order to give them a week’s notice.
Kensington has already increased its adverse core range by 0.55 per cent earlier this month.
The email to brokers says: “Given current global capital market volatility, the cost of funding adverse credit mortgages is changing daily, as is investor appetite for mortgage portfolios which include high LTV, high adversity loans. We review our pricing and criteria on a regular basis and, at the moment, funding cost is increasing and investor appetite has decreased, portfolios since 1995, we must reflect this in our product pricing and criteria.”
Kensington says the current rates and criteria will be available until close of business on September 6.
To guarantee its current rates and criteria, applications must be signed and dated on or before September 6 and received by Kensington by close of business on September 11.
Kensington says: “We will continue to review our pricing and criteria and are committed to communicating any changes at the first opportunity to ensure that our actions remain transparent and easy to understand. We will also be looking out for the moment at which the cost of funding starts falling again to ensure that Kensington products remain competitive in a changing market.”