It has also reduced its rental cover requirement from 125% to 120%.
The range will be offered to customers across the board, from first-time landlords, who have a previous mortgage history, to experienced investors. Each case will be manually underwritten.
In addition, Kensington will offer borrowers the option to pay the product fee as a percentage or flat rate.
Deals include a two-year fixed rate at 5.24% up to 75% LTV, with a 2.50% fee, or a rate of 5.74% with flat fee of £1,499.
For 85% LTV, there is a two-year fixed rate mortgage at 5.99%, with a 2.50% fee. In addition, for 80% LTV there is a two-year fixed rate at 5.69% with a 2.50% fee or a rate of 5.99% with a flat rate of £1,499.
These three deals are available to investors with a portfolio of up to three properties already with Kensington. Investors with four to six properties have rates starting from 5.44% at 75% LTV.
New-build properties, including flats, will be allowed up to 65% LTV. This will be restricted to pre-existing new-build properties with a minimum valuation of £120,000.
The maximum loan amount for the range is £350,000.
Charles Morley, head of sales and product development at Kensington, said: “We see buy to let as a great opportunity. Demand for rental property is exceeding supply and it will continue to do so for some time, so the need for buy-to-let products is key.
“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. This range targets those areas.
“We see this as the year that the market looks at us as the intermediary lender and this range is the first of several big initiatives.”
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.”
Conor Murphy, director with mortgage broker Capricorn Consultancy agreed this is good news for the market.
“I expected to see some higher LTV products this year and the flat fee option attached to the products will make them the most competitive in the market or certainly close to it, depending on loan size.”
