Kensington returns to lending
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Kensington has today announced that it has returned to lending with a two-year fixed rate product.
The firm is taking a cautious approach to its re-entry to the market and has launched to market today with a single product via three distribution partners.
The prime two-year fixed rate is available to appointed representatives of Pink Group, Openwork and Legal & General.
It was this time last year that the specialist lender announced that it was withdrawing from the market as a result of the credit crunch and instead focussed on managing its backbook.
But Mortgage Strategy revealed in August 2009 that the firm was talking to packagers and distributors ahead of a return to the market lending again.
Keith Street, head of Kensington, says: “Kensington has returned to the intermediary mortgage market, offering prime products through a controlled distribution.
“The whole landscape of our industry has changed in the past two years and we have evolved to meet those changes. We have combined our expertise with the experience and strengths of our parent, Investec, and are ready to improve supply and choice for customers.
“Market recovery won’t happen overnight and, as you might expect, we need to maintain a cautious approach. We remain committed to intermediaries and are dedicated to supporting the benefits of professional financial advice and clear information to assist customers in selecting the right mortgage for their needs.”
Ben Thompson, director of mortgages at Legal & General, says: “The return of Kensington is great news and we’re pleased to be working with them. This is an indication that lenders who have been on the sidelines now want to get back in on the action where possible.
“The fact that the market sees opportunities is very encouraging indeed, and whilst it is important not to overplay this, we welcome an increase in the supply of credit to help get the lending market moving again. There is evidence of an increasing level of variety and choice amongst mortgage products and this is good new for house purchasers and remortgagers.”
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Readers' comments (6)
Graham Kennedy | 25 Nov 2009 10:03 am
While it is encouraging to see a lender reenter the market it is disappointing that it is only for appointed representatives of a small number of distribution partners. If Kensington in committed to intermediaries why not price for the same anticipated volumes but for wider access? One small step I suppose is better than none!
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Anonymous | 25 Nov 2009 10:55 am
It will be interesting to see how much business they will attract based on the description of the product - by the looks of it they only want credit clean clients, and the rate and fees for the given LTV are way off high street rates - the only justification I can see for the rate and fees is "traditional underwriting" whatever that means - does this mean that it is only credit searched and not credit scored ?
Full status Cases at 65% with no CCJ's or arrears shouldn't be that hard to place with any high street lender - so what can Kensington offer that the high street can't in order to justify the higher rate and fees ?
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Rob Jupp | 25 Nov 2009 11:23 am
Kensington reentering the market is absolutely fantastic news. They have the backing of one of the world's premier Investment Banks in Investec. Of course they will show caution in the short term but this is still excellent news; I think we should all rememeber that they are an intermediary based lender. Welcome back to Keith, Charlie and the team.
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Mark Stroud | 25 Nov 2009 1:53 pm
Lenders like these have proved to be fair weather friends, when we needed them most they withdrew from the market. Regardless of their products or ltv I will continue to support lenders who supported us during these trying times.
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Anonymous | 25 Nov 2009 4:27 pm
Whilst it is a good sign for a lender like this to re-enter the market, I am once again disappointed that they have restricted their distribution to Network Members the same as Platform has done. It seems silly that I.F.A's have less access to the market than A.R's and defeats the object of being able to offer truly Independent Advice. Since I cannot place business with them at present I will not in the future when and if they widen their distribution channels. I feel that all I.F.A's should take the same stance.
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Martin Simple | 26 Nov 2009 2:57 pm
What happened those bunches of wackos who calls them selves financial services regulator? Why are they only focused on intermediary and not lenders, they are keeping us so busy and letting the lenders to kill the market for us. They say that TCF is their first stance they don’t even know the meaning of it them selves. They are total hypocrites.
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