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Kensington launches 75% interest-only mortgage

  • 23/09/2015
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Kensington launches 75% interest-only mortgage
Kensington has introduced interest only mortgages up to 75% LTV for customers who earn £75,000 or more and evidence of a 'realistic and plausible' repayment strategy.

This strategy could include sale of property, as long as the rationale behind downsizing makes sense, or the sale of unencumbered second or buy-to-let properties.

Kensington can also look at share portfolios, ISAs, investment bonds, endowments, unit trusts and pensions, it confirmed

Sarah Green, head of sales and marketing at Kensington, said: “A healthy mortgage market is one that is diverse, with a variety of options for different types of customer. While interest only is certainly not for everyone, it can be the right option for some customers with larger incomes and access to alternative repayment options.

“As Kensington underwrites each case on its own merits, we are able to give careful consideration to all of the circumstances around an application. This includes the plausibility of the repayment strategy and a true assessment of all aspects of a customer’s income, including variable income such as bonus, overtime, investment or vested shares.”

Earlier this month, NatWest Intermediary Solutions also relaunched back into residential interest-only mortgages at up to 75% LTV.

The lender began lending to new customers earning over £100,000 excluding discretionary bonuses on Monday 21 September.

Applicants must have a repayment strategy although further restrictions apply if that strategy is resale. The lender said customers will not be accepted if they plan to repay the loan within three years or use the mortgage to consolidate debt.

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