The move comes as a result of industry feedback, with packagers keen to take advantage of tailored criteria and pricing. Rates are available from 10.49 per cent for customers with no arrears or CCJs, and are aimed at borrowers with a low adverse rating. In anticipation of changes to the Consumer Credit Act, Kensington also confirmed it is to apply a one plus one redemption penalty across its loans.
Alex Hammond, PR manager at Kensington, said: “It has always been our ethos to listen and react to feedback from our customers, which means that we are able to move quickly to introduce products that directly meet demand. With Kensington Personal Loans, our packagers told us that they wanted a new range of products with prices and criteria tailored for those customers who were borrowing up to 80 per cent LTV, so this is what we have introduced. We will continue to maintain a dialogue with our distribution partners and bring new developments to the Kensington Personal Loans product range.”
Hugh Nichols, partner at Badbury Berkeley Financial Services, said the loans market was competitive, but limited. “It is quite a competitive market, but the lenders active in it tend to complete small, rather than large, loans. The admin is expensive, but there is definitely a market for this kind of product.”
