Kensington increases LTV to 85% on BTL

Kensington has launched a new range of buy-to-let deals and increased its LTV to 85% from 75%.

It has also reduced the rental cover it requires from 125% to 120%.

The range, which caters for all types of customers, from first time landlords right through to experienced investors also offers borrowers a choice of how they would like to pay the product fee – as either a flat rate or percentage.

Landlords can choose between a two-year fixed rate mortgage for 5.24% up to 75% LTV, with a 2.50% fee, or opt for the flat fee of just £1,499 and pay a rate of 5.74%.

At 85% LTV there is a two-year fixed rate mortgage at 5.99% with a 2.50% fee and at 80% LTV, customers can choose between a two-year fixed rate at 5.69% with a 2.50% fee or go for a 5.99% rate with a flat fee of £1,499.

Charles Morley, head of sales and product development at Kensington, says: “Increasing demand for private rental property is one of the few areas that commentators agree on at the moment and consensus is that there remains significant opportunity for investors in buy-to-let.

“The problem for landlords is that, up until now, there have been few products that have really played to those areas of the market where there is demand.

“But with our new buy-to-let range, Kensington have targeted those areas of demand – providing landlords with the ability to borrow at keener rates. And, because we look at each application as a customer and not just a number on a credit score, we have been able to lower our required rental cover to 120% by assessing their circumstances.

“2011 will be a big year for Kensington and these new products are the first signal of our intent to become the lender of choice in the intermediary mortgage market. We are working on more initiatives in the coming months, so I would advise all intermediaries to watch this space.”