The range, which caters for all types of customers, from first time landlords right through to experienced investors also offers borrowers a choice of how they would like to pay the product fee – as either a flat rate or percentage.
Landlords can choose between a 2-year fixed rate mortgage for 5.24% up to 75% LTV, with a 2.50% fee, or opt for the flat fee of just £1,499 and pay a rate of 5.74%.
At 85% LTV there is a 2-year fixed rate mortgage at 5.99% with a 2.50% fee and at 80% LTV, customers can choose between a 2-year fixed rate at 5.69% with a 2.50% fee or go for a 5.99% rate with a flat fee of £1,499.
Following analysis of the buy-to-let market, in terms of both future demand and rental yields, Kensington has reduced the rental cover it requires from 125% to 120% – enabling investors who are able to demonstrate affordability greater opportunity to build their property portfolio.
Charles Morley, head of sales and product development at Kensington, said: “Increasing demand for private rental property is one of the few areas that commentators agree on at the moment and consensus is that there remains significant opportunity for investors in buy-to-let. The problem for landlords is that, up until now, there have been few products that have really played to those areas of the market where there is demand.
“But with our new buy-to-let range, Kensington has targeted those areas of demand – providing landlords with the ability to borrow at keener rates.
“And, because we look at each application as a customer and not just a number on a credit score, we have been able to lower our required rental cover to 120% by assessing their circumstances.
“2011 will be a big year for Kensington and these new products are the first signal of our intent to become the lender of choice in the intermediary mortgage market. We are working on more initiatives in the coming months, so I would advise all intermediaries to watch this space.”
Ben Thompson, managing director at Legal & General Mortgage Club, said: “Kensington has delivered a really eye-catching set of products with this new buy-to-let range, which is good news for landlords and good news for mortgage intermediaries. If lenders continue to show this type of product innovation, 2011 could be a more positive experience for the mortgage market.”