Kensington has announced the launch a range of fixed rate residential mortgages and a buy-to-let affordability calculator.
The Select range, which will be launched on Tuesday (16 May), features a two-year fix at 2.39 per cent, a three-year fix at 2.89 per cent and a five-year fix at 3.19 per cent, all with a fee of £999 and available at 75 per cent loan-to-value (LTV).
If borrowers choose not to incur a completion fee, the rates are 3.29 per cent, 3.39 per cent and 3.59 per cent respectively.
At 85 per cent LTV, a two-year fix is available at 2.89 per cent, a three-year fix at 3.39 per cent and a five-year fix at 3.54 per cent, all of which come with a fee of £1,299.
For a non-high street lender to offer these rates with this low rental calculation is very good.Nick GreenWithout a completion fee, the rates are 3.64 per cent, 3.74 per cent and 3.94 per cent respectively.
Existing residential rates on several five-year fixed rate mortgages have been cut by up to 0.3 per cent, with Kensington’s 75 per cent LTV five-year fixed rate mortgage (no completion fee) is now available from 3.89 per cent.
The lender has also launched a new online affordability calculator for buy-to-let customers to show the maximum amount they can expect to borrow based on their circumstances.
The range includes five-year fixed rates which will use an assessment rate of 5 per cent for affordability.
Brokers can enter their customer’s personal, property and income details to retrieve a bespoke calculation, while joint applicants will be allowed to declare their individual share of the purchase.
Steve Griffiths, sales and distribution director at The Northview Group, said: “At Kensington, we have always aimed to deliver individual solutions, no matter if you are buying a home to live in or a property as an investment.
“Our launch of the new Select range of residential mortgages at rates starting from just 2.39 per cent and the revamp of our buy-to-let calculator that will deliver bespoke interest coverage ratios (ICRs) based on customer’s individual circumstances, is a clear demonstration of our continued commitment to develop tailored solutions.”
Nick Green, broker at Coventry-based Alternative Estates and Financial Services, described the buy-to-let calculator as “very good at 5 per cent”.
He added: “It depends on their multiplier - i.e. 145 per cent of the 5 per cent - but for a non-high street lender to offer these rates with this low rental calculation is very good.”
simon.allin@ft.com
