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Kensington reveals plans to help lockdown-hit borrowers and securitisation deal

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  • 17/06/2020
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Kensington reveals plans to help lockdown-hit borrowers and securitisation deal
Kensington Mortgages plans to complete a securitisation deal this week that will allow the lender to reduce its pricing, expand its existing range and introduce a suite of post-coronavirus mortgage deals.

 

The specialist lender said that after the securitisation, it will be in a position to relaunch competitive deals supporting people who have been affected by the crisis.

Speaking on Kensington’s webinar, Post Lockdown: The Future for Brokers and Customers, new business director Craig McKinlay, said: “We are looking to do a securitisation this week which will the first securitisation in the market post-Covid.

“That will then give us the funds so we can expand our product range back to something similar to what it looked like previously.

“We will be able to reduce some of our pricing especially on buy to let, which we raised, so we can get back to being really competitive.”

After that, Kensington said it wants to release a new suite of deals that will serve the cohort of borrowers who have suffered financial hardship during the coronavirus pandemic.

 

Sympathetic and sensible

“We will be looking at a post-Covid product range that takes account of people who have had temporary hardship or been on furlough or payment holidays and have got back to normal,” he said.

The lender conducted a survey of 100 brokers to find out what kind of deals and lending policies were needed to support borrowers looking for mortgage finance in a post-Covid 19 market.

Respondents said they wanted lenders to take a flexible, sympathetic and sensible view of borrowers’ circumstances.

For example, if an applicant had been furloughed and had restarted work, and made some mortgage payments after a payment break, brokers felt lenders should treat them the same as they would before the pandemic.

McKinlay added: “That [circumstance] would feed into the specialist lender world where we operate. Most of the specialist lenders don’t credit score and have human manual underwriting so [the case] is less likely to get kicked out by an algorithm.

“It is a real opportunity for us specialist lenders to step up with some good post-Covid products to make sure we treat customers sensibly.”

 

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