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Kensington reports strong profits

Kensington Mortgage Company&#39s profit growth is on track to meet directors&#39 expectations for the year ending November 30, 2002.

New business performance continues to be strong and originations for the last five months were substantially above the same period last year following the trend reported for the first half. The offer pipeline has continued to grow whilst credit quality has been maintained. Margins for new business have remained healthy and in line with expectations.

While the mortgage market has continued to be buoyant, Kensington has maintained our prudent lending policies, avoiding high LTV lending, maintaining average income multiples below the average for the industry and ensuring that the loans are secured on high quality properties. The mortgage portfolio is performing well and mortgage arrears and loan losses have continued to fall. Costs remain under control.

The acquisition of The Mortgage Lender Limited, a leading direct distributor of non-conforming mortgages, was completed in September 2002. Integration is progressing well and TML is generating new mortgage business in line with expectations for credit quality, margin and volume.

Kensington&#39s latest securitisation, Residential Mortgage Securities 13 plc, was successfully completed during October 2002. This £600m transaction was 60% larger than any of our previous deals and delivered an attractive cost of funding in relatively turbulent markets. Global demand for the bonds was once again high and, for the first time, the transaction was issued in three currencies (Sterling, US dollars and Euros). In August 2002 the sub-ordinated bonds of RMS 6 were upgraded by S&P and Fitch so that now the sub-ordinated bonds in the first six of Kensington&#39s 13 securitisations have all been upgraded.

The directors remain confident about the future for Kensington. During 2002 it has further strengthened its distribution through the acquisition of TML. Risk management remains central to Kensington&#39s business and, as a result, it is well positioned to sustain its leadership in benign or changing markets and therefore continue to enhance shareholder value.


Sick borrowers tied in to poor deals

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Special effect

Sub-prime is dead. Long live specialist lending.It could almost be a cry from a battlefield but these are the sentiments of one of the country&#39s top sub-prime lender chief executives.The last 12 months have seen the specialist lending sector go from strength to strength with record levels of business written and, presumably, record profits made. […]

My mortgage week

Monday: Early start to make a site visit to a Midlands-based lender with two new vacancies. After a quick wine bar lunch, return to the office with copious notes to record background information and prepare a consultancy contract. Spent the rest of the day contacting newly-registered candidates, writing copy for our next advert and preparing […]

New boardroom faces for Chancery Law Group

Chancery Law Group, the nationwide supplier of estate planning via financial intermediaries, has appointed former PWC partner Richard D Sidery as financial director and Bruce Boswell as business development director . The appointments have the effect of doubling the size of Chancery&#39s board in line with its rise in turnover. The two join managing director […]

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Guide: how to… audit your auto-enrolment scheme compliance

As the Pensions Regulator starts to bare its teeth and the changes mentioned in the Budget and Queen’s Speech start to come into force, it is essential that you understand your scheme and the processes you need to undertake to ensure it remains compliant. Our second re-enrolment guide looks at how to audit the key areas of your auto-enrolment scheme.


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