Speaking during an online panel debate hosted by the lender, Kensington Mortgages’ new business director Craig McKinlay (pictured), said the long-term fixed rates would mean first-time buyers would not have to be stress-tested on much higher interest rates than the actual deal they were taking out.
The fixed rate terms will range from 11 years to 40 years and will go up to 95 per cent loan to value for first-time buyers.
Kensington re-entered the 95 per cent LTV market in July.
The deals are expected to give first-time buyers a significant affordability boost compared to the lender’s two and five-year deals.
The launch is planned for the end of November.