The withdrawal is currently for an indefinite period of time 'until market conditions improve'.
The lender is also making a host of changes to its Prime range, including the withdrawal of the K1995 special and Buy to Let Self-cert product for first-time investors, and removal of the upper LTV bands across the range. This includes 95 per cent LTV on verified Prime, 90 per cent LTV on Buy to Let, and 85 per cent LTV and 90 per cent LTV on Self-cert. Changes will take effect from Monday 26 November.
There will also be new prices for Self-cert products, with fixed rates available from 6.55 per cent and trackers from 6.65 per cent.
Brokers have until close of business on Friday 23 November to submit Adverse applications and Prime cases at the current rates.
Fully packaged business then has until the end of Monday 26 November.
Alison Hutchinson, chief executive of Kensington, said: “Tough times call for tough decisions and Kensington has always communicated its decisions quickly and openly with its intermediaries.
"We introduced a 75 per cent LTV cap on our Adverse range in September in direct response to the lack of investor appetite.
"Demand from investors for adverse credit or high LTV portfolios shows no sign of returning in the next few months, so we have taken the decision to put our Adverse range on ice and revamp our Prime range until the investor market returns and Kensington’s great experience in building high quality, profitable mortgage portfolios will put us in a strong position to lead the specialist market into the future.”
