Sub-prime lender Kensington Mortgage Company is offering a raft of
non-conforming fixed and discount rate loans for borrowers with minor
The lender, which floated on the London Stock Exchange last November, has
set up seven loans which it believes will attract a more diverse range of
Available for purchase or remortgage, the loans are fixed until January
2003 and offer rates from 5.99 per cent to 6.49 per cent depending on
credit history and loan to value.
Income multiples are 3.5 times single income or three times joint income.
Borrowers unable to prove inc-ome can also apply.
Kensington is also offering a 1.25 per cent discounted variable rate loan
until January 2003. Under current interest rates, borrowers pay 6.75 per
cent during the discounted period before switching to the lender's variable
rate of 8 per cent.
For borrowers looking to enter the letting market, Kensington is launching
buy-to-let loans at rates from 6.74 per cent to 7.24 per cent. Brokers get
0.5 per cent of the loan to a maximum £2,500.
Chief executive John Maltby says: “We are committed to meeting the needs
of borrowers in the non-conforming market.”