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Kensington launches complex new-build and slashes rates by 1.1%

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  • 07/09/2016
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Kensington launches complex new-build and slashes rates by 1.1%
Kensington has overhauled its mortgage range with lower pricing, launched a specialist new-build proposition and refreshed its large loan range.

The lender’s complex new-build mortgages are targeting the gap in the market for borrowers in the specialist sector who don’t fit the ‘standard lending approach.’

The range offers a maximum Loan to Value (LTV) ratio of 85% on new-build houses and flats, with rates of 3.79% up to 75% LTV, 4.04% up to 80% LTV and 4.54% up to 85% LTV.

All of Kensington’s new-build mortgages include a six-month offer period, but borrowers can extend this period if the property is incomplete. The lender has a dedicated new-build team and named underwriters to assess each mortgage application on a case-by-case basis.

In addition, the lender has cut rates across its existing residential and buy-to-let range by up to 1.10%.

Its refreshed Premier range for large loans has no completion fee. Rates are available for 3.59% for residential and 3.89% for buy to let and the lender has introduced the option of a one-year fixed rate with no overhanging Early Repayment Charges.

Steve Griffiths, director of sales and distribution at Kensington, (pictured at The Mortgage and Protection Event) said: “At Kensington, we think that new build shouldn’t be limited to customers who meet the standard lending criteria. We’re opening up a new product range to give more customers the opportunity to own a new property, even if they have complex financial circumstances.”

Jeremy Duncombe, director, Legal & General Mortgage Club, said Kensington has become an important partner for the club’s new-build proposition.

“By concentrating on what brokers and customers need in the new-build market, we have been able to challenge the reliance on just two lenders and provide genuine choice. Kensington has listened to those needs, and its specialist new build proposition will expand choice and expertise in the sector”

Islay Robinson, chief executive officer, Enness Private Clients, said: “This is a fantastic opportunity for those in need of a new-build mortgage, especially for customers with complex circumstance and adverse credit. Most lenders will also only offer a maximum LTV of 65% on new build flats, so 85% LTV is quite outstanding.

“On the re-priced core products a five-year fixed rate as low as 3.54% is impressive enough, so the fact this comes with no arrangement fee is even better for those with tighter funds. We find clients with previous defaults often need longer term security and structured monthly repayments when getting back on their feet, which is exactly what this product provides.”

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