Previously Kensington only offered a capital interest payment option and claimed the changes would allow a wider scope, and more flexibility in the application process.
In addition, a criteria change, which means only secured debt will be considered in the debt to income ratio used for affordability calculations, has been introduced. Previously the firm would look at an applicants’ outgoings and include payments on unsecured debt, but it is now calculating on outgoings and on secured debt.
In a busy week for the Kensington Group, which saw the approval of the takeover by Investec, its secured loans arm has also extended its complete offering to Scottish properties.
Karen Agombar, head of packager partnerships at Kensington, said: “Kensington Secured Loans has gone from strength to strength since its launch last Autumn and we’re delighted that we can now meet the demands of brokers and borrowers North of the border by making our entire range of products available to customers in Scotland. Kensington Secured Loans will make yet more developments as we continue to set new standards in this market.”
Peter O’ Donovan, mortgage manager at Bestinvest, said: “The difference with secured and unsecured loans is that clients can take on as much unsecured debt as they want and there’s concern about whether they can afford it. This should be better.”
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