The sub-prime specialist group, which specialises in lending to people who are turned away from traditional lenders, has in the six months to the end of May, seen new business soar by 51 per cent to £415 million.
Tie-ups with lenders Alliance & Leicester and Egg and estate agent Connells - all of whom refer customers who have been turned down for a mortgage - have also boosted business.
Interim pre-tax profits were £13.3 million, up from £10.4 million in 2001, while total operating income rose to £26.4 million from £22.6 million.
Kensington said the quality of its new business had improved during the six months, with the number of new borrowers with county court judgments falling to 38% from 44% in the same period a year earlier.
On average, people were borrowing less than 79% of the value of their property, and less than 1% of new loans were for more than 90%.
But it added that despite this it had marginally increased its provisions for bad debts by £2.8 million, to 0.6% of total loans, up from 0.55% in 2001.
Kensington said it was well placed to carry on growing as the sub-prime mortgage market continued to expand.
