View more on these topics

Kensington extends max interest-only LTV to 75%

Money-Notes-Currency-GBP-700.jpg

Kensington has extended its maximum LTV on interest-only loans to 75 per cent.

Previously, it would lend to 50 per cent LTV with a “plausible” repayment strategy but has extended this to 75 per cent for those earning £75,000 or more, again with a plausible repayment strategy.

Examples of what the lender deems plausible are the sale of the property, the sale of unencumbered second properties or buy-to-lets.

Further examples include share portfolios, Isas, bonds, endowments, unit trusts or the borrower’s pension.

Kensington head of sales and marketing Sarah Green says: “A healthy mortgage market is one that is diverse, with a variety of options for different types of customer. While interest-only is certainly not for everyone, it can be the right option for some customers with larger incomes and access to alternative repayment options.

“As Kensington underwrites each case on its own merits, we are able to give careful consideration to all of the circumstances around an application. This includes the plausibility of the repayment strategy and a true assessment of all aspects of a customer’s income, including variable income such as bonus, overtime, investment or vested shares.”

Recommended

Harpal-Singh-700.jpg

Analysis: Sun is shining so fix that roof

With mortgage advisers’ share of transaction levels likely to pass 70 per cent – perhaps it already has – parts of the advisory community may assume the future is secure and the market will continue to move in their favour. But many of the sector’s highest-profile commentators have warned advisers to fix the roof while […]

Payne

60 Seconds with… Nigel Payne, managing director, TFC Homeloans

How has the role of packager changed in recent years? Not much in terms of its core offering. The sector has been through a turbulent time and come out the other side leaner and wiser. A true packager’s roots are all about finding solutions for brokers and their clients, and they lost some of that […]

Waterson-Nigel-700x450.png

Equity release lending soars as rates fall

Equity release lending jumped 11 per cent year-on-year to £710m in the first half of 2015, according to the Equity Release Council. The report shows equity release lending increased from £641m in the same period of 2014, the highest amount lent in the first half of the year since 2002. Around 10,000 new plans have […]

Newsletter

News and expert analysis straight to your inbox

Sign up