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Kensington increases maximum LTV to 90%

  • 12/07/2011
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Kensington increases maximum LTV to 90%
Kensington has increased the maximum LTV on its core range to 90%, following the launch of a limited tranche of 90% LTV deals through Legal & General.

The lender has also simplified its minimum income requirements for first-time buyers borrowing more than 80% LTV.

Single applicants will need a minimum income of £35,000, while joint applicants must show a minimum joint income of £40,000.

There is no separate minimum income requirement for the main applicant on joint applications.

Products available from Kensington’s core range include a two-year fix up to 90% LTV for first-time buyers at 5.99%, and a 90% LTV three-year fix for first-time buyers at 6.39%, both with a fee of £699.

In addition, Kensington has enhanced the criteria on its buy-to-let products.

Kensington will now waive the requirement for landlords to demonstrate minimum income, if they can show they have successfully maintained mortgages on at least four buy-to-let properties for the previous 12 months.

The lender has also introduced free valuations for remortgage customers, alongside the free legals it already offers.

Charles Morley, head of sales at Kensington, said: “Our research tells us that the market needs more 90% LTV products where responsible lending decisions can be supported by consistent, individual underwriting.

“Many first-time buyers do not have extensive credit histories because they have not managed a mortgage in the past. If they have not used credit cards or taken other forms of credit, this may impact their ability to pass a credit score and prove a barrier to securing a mortgage on their first home.

“We use an experienced team of underwriters alongside our technology, which means we are able to consider all of an applicant’s circumstances even if they do not have a significant file of historic activity with the credit rating agencies.”

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