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Kensington to re-launch secured loans early next year

Kensington is re-launching into the secured loans market early next year, Mortgage Strategy understands.

The lender used to offer secured loans but stopped in 2007 due to funding difficulties.

A spokesman for Kensington says it is actively looking at a lot of markets and secured loans is one of them.

He says: “We are certainly interested at re-introducing secured loans in the future. There is a lot of demand in the market.”

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  • Steve 9th December 2010 at 1:29 pm

    Great news, Kensington always bridged the gap between prime and heavy adverse which has been missing!

    I can see that paragon are still invoved with buy-to-let, is there any speculation about them returning to the secured loan sector?

  • Paul Lefevre - Happy Brokers 8th December 2010 at 2:17 pm

    All lenders gratefully received , we are as busy as weve ever been but the more the merrier after what the market has just been through !

  • Steve Pollard 2nd December 2010 at 1:30 pm

    Any new entrants to the market would be most welcome indeed and I suspect the added competition may force some existing lenders to re-consider their own positioning, particularly if rates are cheaper.

    As Matt says every lender is vying for the same prime business at the moment, but the more competitive prime lending becomes the more lenders must consider their own niche market.

  • Eric DeBrett 2nd December 2010 at 8:54 am

    I know it’s nearly Christmas Matt, but hoping for something “daring” is just dreaming. Given the work that has gone on behind the scenes at Kensington in keeping them in the market, and having some limited knowledge of the current risk appetite at Investec, I wouldnt expect anything very bold just yet.

  • Matt Cottle 1st December 2010 at 2:11 pm

    I agree with Steve. This runour has been floating around for a while and its good to see it in black and white. The sector has bounced back into life beyond all our exepctations, filling in the gaps that mortgages have as yet failed to do. I only hope that Kensington doesn’t follow the trend by trying to grab a slice of the already saturated prime end of secured loans. It would be nice to see a big name do something more daring.

  • Lee Chester 1st December 2010 at 1:33 pm

    Who does 90% LTV second charges? I doubt this would even be commercially viable with all indicators pointing to a drop in house prices next year.

    Try selling a 12% second charge to a prime customer….

  • Steve Walker - Promise Solutions 1st December 2010 at 12:38 pm

    If the rumours about Kensington returning to the secured loan sector prove to be true, it will be huge vote on confidence and welcomed by all. I am sure even the lenders which have battled through the last three years will be pleased. More people need to start talking about secured loans and realise the products are there and available. Self Cert, Heavy Adverse, Income Stretch, Prime Products, 90% LTV, Large Loans up to 200K and much more. Some advisors have now got to grips with secured loans but many more have not. With a well known supporter of the intermediary sector potentially returning to secured loans, I hope more advisors will realise the opportunity and grab it.