Kensington to consider borrowers with CCJs
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Kensington will now consider customers who have had CCJs or defaults registered to their name in the past two years.
Kensington will consider applicants who have had up to two CCJs totalling a maximum of £750 as long as they have been satisfied for more than six months.
Customers are also allowed two unsecured defaults in the past two years, as long as there have been none in the past six months.
The lender says the products have been introduced to meet the demand of a growing number of credit-worthy borrowers who have experienced a financial blip during the recession, found their feet again, but are prevented from getting a mortgage because their circumstances do not meet the rigid criteria required by the automated credit scoring of many lenders.
The prime fixed rate products are on offer from 5.99% at up to 70% LTV.
Kensington has extended its distribution to all members of the L&G Mortgage Club in addition to its existing distributors, which include appointed representatives of Openwork, Pink Home Loans, Personal Touch Financial Services, Mortgage Intelligence and Mortgage Next.
Kensington says it has further plans to open up its distribution to more intermediaries in the near future.
Charles Morley, head of sales and product development at Kensington, says: “We’ve all seen evidence of people struggling to meet all of their credit commitments during this recession. But even if they get back on their feet they will find it very hard to get a mortgage because of the restrictive credit scoring used by many lenders.
“Kensington can help these borrowers because we make a decision on the customer, not just their credit score and this means we can introduce products like these to help intermediaries help their clients out of recession.
“There is a lot of talk about new lenders, but actions speak louder than words. These products are available now, and they are available to a huge number of intermediaries - both directly authorised and appointed representatives.
“Kensington is serious about supporting the intermediary market into sustainable recovery and brokers can expect more evidence to demonstrate our commitment, with new products, distributors and service enhancements being launched in the coming months.”
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Readers' comments (15)
Anonymous | 29 Mar 2010 12:21 pm
ahhhh it's the circle of life! Great news to start off a dreary Monday morning.
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Anonymous | 29 Mar 2010 12:28 pm
Whilst a commendable approach, the constant back handed criticisms of credit scoring and indeed lenders who use such techniques (and are encouraged to do so by the FSA) is unwelcome. It is not Credit Scoring which prevents such applicants from obtaining credit, it is the lenders decision to not operate in this market and then intrdouce an automated process to control costs, reduce needless referrals, maintain controls and consistency. I work for a lender who previously operated in the Non Prime market, we had a number of automated systems in place which were successfully used for the Non Prime market and enabled a fair assesment of applications - not some "woolly" definition where borrowers are offered inappropriate products based on one persons interpretation of policy, or the desire to generate more commission by classing a customer into a higher risk grade.
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Danny Lovey | 29 Mar 2010 12:30 pm
Some daylight at the end of the tunnel! Let us hope that this is just the begining of some liquidity for borrowers who have had a blip.
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John Lacy | 29 Mar 2010 12:31 pm
As long as the sub-prime are charged sub-prime rates this is a step in the right direction. If we go back to allowing the "not so financially adept" to borrow at normal rates the cycle will return to default, repssession and CRASH!!!!!!!"
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Anonymous | 29 Mar 2010 12:33 pm
A chink of light at the end of a long tunnel.
What about those that had mortgage arrears,now cleared during the dificult times????
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Paul | 29 Mar 2010 12:48 pm
Great news. About time a lender took a proactive approach. Kensington were the innovators previously, lets hope they are again. Until there is some element of specialist lending we will remain pretty stagnant. Aldermore next with more to follow hopefully. Sub prime properly managed and priced will be the saviour of the intermediary market.
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Anonymous | 29 Mar 2010 1:11 pm
yes great news if you live in England or Wales but as they do not lend in Scotland not so good and when asked why they don't lend here ''do not know '' was the reply
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Anonymous | 29 Mar 2010 1:31 pm
I am sure they will lend in Scotland in due course. Credit to Kensington, they have only been back in the market for a short time and are already relaxing criteria and increasing distribution. From small acorns and all that.
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John Williams | 29 Mar 2010 2:13 pm
Probably the same reason why some Scottish and Northern Irish lenders will not lend in Wales or England. But i'm on your side in this.
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Grey Haired Underwriter | 29 Mar 2010 4:11 pm
Lots of interesting comments on here and it's good to see a sub-prime lender coming back to the market - hopefully in a sensible way.
But as for some of the other comments I am bound to say to anon 12.28 I ahve worked for both scorers and non-scorers and can assure you that credit scoring does badly what it says it will do. I have seen the Cr*p that it approves and the good cases it rejects. It is a machine based system and treats everyone based on an assumed norm. Shame that people aren't all the same in their financial behaviours.
The reason why some lenders won't lend in Scotland and vice versa is obviously the different legal system that requires cost of setting up all of the documentation and obtaining the necessary expertise (let alone the jargon!)
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