Kensington launches fixed plus payment option

Kensington Mortgages has launched a fixed plus payment option on all its standard products that combines the benefits of fixed and tracker features.

Fixed plus enables borrowers to benefit from the payment security and budgeting of a three year fixed rate, while receiving the benefits normally associated with tracker products if interest rates reduce.

The initial rate is fixed at the maximum you will pay for three years – however, if market rates fall, the borrowers mortgage rate will decrease. The product also comes with free valuation and up to 400 cashback. Rates start from 5.55%.

Alison Hutchinson, managing director for Kensington Mortgages, says: I am delighted Kensington is able to offer these unique features on the fixed plus range at a time of rate uncertainty. Some analysts are predicting reductions while others are suggesting increases. If your client is looking for a competitive rate, security over the long term, and the ability to benefit from interest rate falls then the three year fixed plus adds up to a great deal.

Simon Snape, head of products at The Finance Centre Homeloans says: Its great to see Kensington can deliver a new value adding angle to its mortgage products with the introduction of its capped rate products, known as fixed plus. These products give borrowers the certainty of knowing what the maximum amount of their monthly repayments could be, but if Kensingtons variable rate falls, they will pay and benefit from a lower rate.