Kensington Mortgages will help customers who have had recent credit problems with the launch of its new Options range.
Residential Options mortgages are being brought to market by Kensington at the same time as the company issues a wider pricing review across its residential range.
Customers will be eligible for the Options range even if they have one secured arrears in the last 24 months, but zero in the last 3 months, or have an unsecured arrears greater than 6 months old.
Customers can also have one county court judgement in the last 24 months, but none in the past 6 months, or one default in the last 24 months, but zero in the last 6 months.
As part of the Residential Options launch, Kensington will now offer loan-to-value up to a maximum of 85 per cent, with a maximum loan of £1m at 75 per cent LTV. This is also eligible for first time buyers (FTBs) on part of the range.
Two, three and five-year fixed rates will be offered, with standard rates starting at 3.84 per cent for a two-year fixed rate at 75 per cent LTV.
Craig McKinlay, sales & marketing director at Kensington Mortgages, said: “At Kensington, our focus is, and always has been, to help Britain’s underserved borrowers including those who have had some recent credit blips and find it a challenge to find a mortgage.
"These latest changes to our mortgage proposition reinforce our commitment to the growing specialist lending market as we reach out to a wider customer base and provide more flexibility for borrowers with complex incomes."
Alan Lakey, director of CIExpert and Highclere Financial Services, said: “This is a welcome upgrade. The rates are very competitive with 2 year fixes starting at 3.44 per cent.
“Ten years ago there were numerous lenders within the impaired credit market but few remain so this is a worthwhile move.”
