Kensington launches discounted products
These are aimed at the growing number of borrowers choosing variable rate mortgages instead of fixed rates, whose prices have been pushed up by the recent rise in swap rates.
The range has a two-year discount from 4.90 per cent and a three-year discount from 5.74 per cent, backed by a range of fixed rates to give the customer a choice, with no overhanging Early Repayment Charges, no Higher Lending Charges and a flexible features option.
Brokers have a choice of how to access Kensington. Either direct by telephone; via the lender’s website, www.kmc.co.uk, where intermediaries can get binding decisions and online applications; or via Kensington’s network of packagers.
Kensington offers up to 90 per cent Loan to value (LTV) on Buy to Let and Right to Buy, loans up to £1 million and no maximum age limit. Its loadings approach lets brokers mix and match the right product features, depending on their customer’s individual requirements.
Ian Giles, director of marketing at Kensington, said: “If the borrower can accept some increases in the rate, a discount is a good option right now. With the margin between fixes and discounts of similar periods increasing to around 0.50 per cent in some cases, I’d expect to see more opting for the lower rates offered on variable deals. After all, there would have to be two Base Rate increases of 0.25 per cent before the discount would be the same rate as the fixed and your borrower will have enjoyed the benefit of the cheaper rate in the meantime.”