Record lending for KMC in second half of 2002

Kensington Mortgage Company lent a record £603m in the six months ending November 2002, taking new business origination to £1.02bn for the year – 48% more than 2001, writes Harriet Williams.

Pre-tax profits rose by 21% to £30.2m, while earnings per share increased 31% to 40p. Investment in sales force and distribution paid off with the number of intermediary sourced loans up by 20%, and business through packagers up by one-third. Maximising distribution channels is a key target. KMC acquired a direct sales side with the purchase of The Mortgage Lender last year. Less than 1% of new loans were made at more than 90% LTV last year. The percentage of borrowers with CCJs fell to 38% from 41% in 2001, while accounts in arrears fell to 12.4% of the portfolio from 14.7%.