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Kensington Mortgages partners with Proportunity to offer combined loan

  • 06/12/2021
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Kensington Mortgages partners with Proportunity to offer combined loan
Specialist lender, Kensington Mortgages, has partnered with Proportunity to offer a combined loan product, which will help borrowers with lower deposits get on to the property ladder.


Proportunity, which is a shared equity loan provider that was launched in 2016, will offer up to £150,000 or 25 per cent of the property’s value. Kensington will then offer a first-charge mortgage at a lower loan to value (LTV).

This combined loan will allow consumers to borrow up to six times their salary, and according to Proportunity the deal also has a lower interest rate than a 95 per cent LTV mortgage so the overall cost of the mortgage is lower.

According to its website, blended rates, which is Proportunity’s initial rate paired with a main lender rate, range from 2.09 per cent to 2.64 per cent. Rates vary depending on the LTV, which range between 10 per cent and 25 per cent, and on whether the £499 or £999 product fee option is selected.

Proportunity works in a similar way to the government’s Help to Buy scheme, which is set to be discontinued next year, but is available on existing properties and those already on the property ladder rather than solely new builds and first-time buyers.

Paul Lewis, head of intermediary partnerships at Proportunity, said: “This partnership is good for Kensington, good for Proportunity and, more importantly, good for the borrower.

“Kensington Mortgages is known as a leader in the specialist lending market, and its forward-looking approach makes it stand out still further as a lender who will reach out to credit-worthy borrowers with real and practical solutions.”

Craig McKinlay (pictured), new business director at Kensington Mortgages, added: “This innovative shared loan from Proportunity fills a much-needed gap which will increase in importance as the Help to Buy scheme tails away next year.

“There is a real need to help people who only have a small deposit and don’t have the luxury of a parent or grandparent to help them onto the housing ladder or to move home, this partnership with Proportunity means we can do that.”

He said that Proportunity’s shared equity loan worked well with its specialist range of mortgages and helped borrowers to scale up their current property or buy their first property. He added that as the loan was available on existing properties and for current borrowers, more people could access it.

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