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Kensington pulls 85% BTL and 90% residential deals

Kensington is pulling its 85% LTV buy-to-let deals and its 90% LTV residential mortgages tonight.

The lender says it has had a bumper August and is nearing the end of its current tranches.

A spokesman for Kensington, says: “Kensington had a record breaking month in August, lending more than in any other month since our return to the intermediary mortgage market in 2009 and continuing the strong growth we have seen in 2011.

“As a consequence, we are nearing the end of current tranches on certain products and, in order to maintain consistency of service for our intermediaries, we are temporarily withdrawing  these products from our range.

“We are already working on new products with great rates and criteria that we expect to launch shortly.”

Kensington increased its LTV to 85% from 75% in February and launched its 90% LTV deals in May.

It will still offer 80% LTV on its buy-to-let deals and 85% LTV on its residential range.

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  • Edward Leo 25th September 2011 at 9:52 pm

    ok i have a quick question.
    I have been given a D.I.P which is still within the 40 day period does this mean if i find a house they wont honour it as they have withdrawn the product?

  • Shaks 23rd September 2011 at 3:33 pm

    So good that they’re withdrawing it? Yes I gree that really we and clients should be releived (not grateful) that they are lending, but what a uphill struggle. My client had to arrange an appointment with a CSI Forensics examiner to confirm DNA, Blood group and Biometric data. In the end he was locked up for murder 2 and will re-appear in the next episode as a dodgy laywer who took bribes and murdered the clients to shut them up. No, its true or is it just Friday etc.

  • Jason Neale 22nd September 2011 at 1:56 pm

    The reality here is that Investec are running the show and provide a limited amount of funding for KMC to lend. When it’s gone it’s gone so as KMC approach the limit Investec insist on products being withdrawn to stop the flow. Nothing more complicated than simply running out of money to lend so the most popular and/or the higher risk products have to go.

  • Steve Brockman 22nd September 2011 at 10:20 am

    Went to a Seminar at Brands Hatch in Kent on 20/09/2011 and Kensington were there doing a Round Table. They made a special effort to push the fact they were doing 85% B/T/Let and 90% Residential even though it was all queried by the attendees as high risk business that they always used to offer before they ‘withdrew’ from the market. High Risk business is still High Risk Business no matter how you wrap it up and you would have thought that they would have learned their lesson by now!

  • colin 21st September 2011 at 6:03 pm

    spongebob……not annoyed at all about what they ask for, its the frustration of not asking for it at the outset, but rather in dribs and drabs. It makes us and them look unprofessional. Underwrite it and ask for definitive list of case requirements!!!! its not just kensington.

  • john 21st September 2011 at 2:29 pm

    So negative … it must have been a popular product if its reached its tranche. They have been on big recruitment drive so they are hardly gearing up to close down.

    Who cares what they want … your getting the loan to value, just provide what they ask for, accept it and move on!

  • spongebob 21st September 2011 at 2:12 pm

    colin,

    I presume if you were lending someone e.g £70,000+ you would want to know they can pay it back aswell…..wouldn’t you?

    I really just cant understand why advisors moan when they are asked to see a clients credentials etc. In my view they should start asking for much much more. The client/broker is lucky that an institution is willing to lend that amount of money, and they get annoyed when the lender asks, oh how is mr joe bloggs going to pay us back??

  • colin 21st September 2011 at 1:15 pm

    Sue

    Yes indeed, i obtained two of those for one client!!!!!!!………..but boy was it an uphill struggle. He had sold a car for some of the deposit(he was a car trader) and we had to provide a bank statement, receipt, copy of the V5, six months bank statements, accounts, mortgage statement, ……..blood sample, DNA & Urine sample!!!!!!!!…..i jest about the last three but would not have been surprised!!!!!!!

  • Jon Lord 21st September 2011 at 12:36 pm

    It’s just a product withdrawal, Why is everyone so negative!

  • Sue 21st September 2011 at 11:19 am

    That 85% loan appeared to be a headline attention-getting rate. Is there anyone out there who actually obtained one of those 85% loans?

  • Luke Atkinson 21st September 2011 at 11:13 am

    This reminds me of their communication in 2008…just before they left the market.

  • Rod Moulton 21st September 2011 at 10:55 am

    Although it’s understandable to advise withdrawal of products once the allocated tranche starts to run dry but i’m sure the intermediary market would prefer a seamless transition of products in order to best offer service to their clients; a (potential) hiatus from the lender is not helpful.

  • Will Reid 21st September 2011 at 10:29 am

    Still not lending in Scotland either 🙁

  • colin 21st September 2011 at 10:29 am

    “in order to maintain consistency of service for our intermediaries”

    hadn t noticed a change……its always painful

    LOL

  • bob dobalina 21st September 2011 at 9:56 am

    Storm clouds are gathering.