Kensington Mortgages has launched a new range of discount rates.
The products are aimed at the growing number of borrowers choosing variable rate mortgages instead of the increasingly expensive looking fixed rates, whose prices have been pushed up by the recent rise in swap rates.
With a two year discount from 4.90% and a three year discount from 5.74%, backed by a range of fixed rates to give the customer a choice, all with no overhanging Early Repayment Charges, no Higher Lending Charges and a flexible features option, the Kensington Choices range is designed to offer intermediaries great value products in the specialist mortgage sector.
Brokers have a choice of how to access Kensington; either direct by telephone to Kensingtons Reading operations centre, via the lenders website, www.kmc.co.uk/, where binding decisions and online applications make dealing with Kensington easy, or via Kensingtons established network of packagers.
Whichever access route the intermediary chooses, he or she can be sure of Kensingtons consistent service standards and underwriting expertise, as 11 years of experience has resulted in capacity planning that can handle high volumes of business without compromising on service.
And brokers shouldnt forget that Kensington offers up to 90% LTV on Buy to Let and Right to Buy, loans up to 1m and no maximum age limit. Its loadings approach lets brokers mix and match the right product features, depending on their customers individual requirements.
Ian Giles, director of marketing at Kensington, says: “If the borrower can accept some increases in the rate, a discount is a good option right now.
“With the margin between fixes and discounts of similar periods increasing to around 0.50% in some cases, I’d expect to see more opting for the lower rates offered on variable deals.
“After all, there would have to be two base rate increases of 0.25% before the discount would be the same rate as the fixed and your borrower will have enjoyed the benefit of the cheaper rate in the meantime.”