In Investec’s annual report, it showed that the Kensington Group, which includes Irish lender Start Mortgages, had 24.4% of its mortgage book at an LTV of more than 100% and almost 18% of its loan book at an LTV of between 90 to 100% as of March 2011.
In comparison, 18.4% of Kensington’s loan book had an LTV of over 100% and 19% had an LTV of between 90 to 100% in March 2010.
The increase in the high LTV loans was due to Start Mortgages exposure to the Irish housing market.
A spokesman for Kensington declined to comment on their plans for next year, but said:
“While Kensington’s portfolio is performing well and has seen strong positive improvements in 2011, Ireland’s economy is clearly enduring a difficult time.
“Since taking 100% ownership of Start Mortgages in June this year we are using our experience and expertise at customer management to work with Start to help them in this challenging environment.”
The percentage of Kensington’s accounts in more than 90 days in arrears stood at 31% in March 2011, increasing from 28.4% the year before.
However, impairment losses on loans and advances relating to the Kensington business amounted to £69.9m this year, compared to £81.2m in 2010.
The report said: “The year in review remained challenging as the severe deterioration in economic conditions globally continued to impact on clients’ activities and underlying asset values.
“The Irish market was particularly affected by economic difficulties and the local banking crisis.”
The results also showed that geographic distribution via Start Mortgages was around 23% in March 2011, up from 20.9% in March 2010.
