This combines the benefits of fixed and tracker features.
‘Fixed Plus’ enables borrowers to benefit from the payment security and budgeting of a three year fixed rate, whilst receiving the benefits normally associated with tracker products if interest rates reduce.
The initial rate is fixed at the maximum you will pay for 3 years; however if market rates fall, the borrower’s mortgage rate will decrease. Add to that Kensington’s free valuation and up
to £400 cashback, and it’s a really great deal for the borrower.
Rates start from 5.55% - cheaper than many standard 3-year fixed products.
Alison Hutchinson, Managing Director for Kensington Mortgages said: “I am delighted that Kensington is able to offer these unique features on the ‘Fixed Plus’ range at a time of rate
uncertainty. Some analysts are predicting reductions whilst others are suggesting increases. If your client is looking for a competitive rate, security over the long term, and the ability to benefit from interest rate falls then the 3 year ‘Fixed Plus’ adds up to a great deal.”
One of Kensington’s branded lenders, The Finance Centre (TFC) is equally excited about the fixed plus offer.
Simon Snape, head of products at TFC Homeloans says ‘It’s great to see that Kensington can deliver a new value adding angle to their mortgage products with the introduction of
their Capped rate products, known as Fixed Plus. These products will give borrowers the certainty of knowing what the maximum amount of their monthly repayments could be, but if
Kensington’s Variable Rate falls, they will pay and benefit from a lower rate’.
