As exclusively revealed in Mortgage Introducer, Kensington Mortgages has taken the decision to enter the prime sector.
The lender has confirmed the products include two and three- year trackers in addition to a two-year fixed rate product. Its prime self-cert offer is available up to 90 per cent loan-to-value (LTV) for loans up to £500,000, with its LTV set at 85 per cent for loans up to £750,000. No proof of income is required from day one of self-employment.
Its prime BTL proposition is available at 90 per cent LTV, up to 125 per cent of monthly rental income validated by a letting agent.
The lender’s mainstream line is available up to 95 per cent LTV, with no higher lending charges (HLC). The income multiples are set at four plus one.
Alison Hutchinson, managing director at Kensington Mortgages, said: “We know there’s a market out there for these products. Packagers, networks, mortgage clubs and brokers have all told us that these are the type of mortgages they want to be able to offer clients.”
She added: “These are solutions for prime customers with specialist needs who are not being well-catered for elsewhere.”
Alan Lakey, senior partner at Highclere Financial Services, said the products would appeal to many borrowers. He said: “Most self-cert lending requires at least six months of income proof, so to have no proof from day one is quite unusual. Its BTL offer also sounds competitive, although the rates for its mainstream product will have to be incredibly good to compete.”
