Kensington cuts residential rates

Kensington cuts residential rates

Kensington Mortgages has cut the rates on its residential mortgages by up to 0.25 percentage points.

Products affected are the two and three-year fixes available up to 85 per cent loan to value (LTV).

On Kensington’s Select and Young Professionals range rates now start at 2.89 per cent on a two-year fix at 75 per cent LTV, representing a 0.25 percentage points reduction.

The lender's three-year fixes now start at 3.19 per cent on 75 per cent LTV and 3.34 per cent on 80 per cent LTV, which is 0.15 percentage points less than before.

There have also been reductions on Kensington's Select products at 85 per cent LTV, which are now offered at 3.39 per cent for the two-year fix and 3.69 per cent for the three-year fixed product.

Craig McKinlay, new business director at Kensington Mortgages, said: "At Kensington Mortgages, we’re committed to providing borrowers and brokers with the widest possible range of products at competitive rates, so that everyone can find the right product for their needs.

"This is true whether the borrower is a young professional looking for their first home, an older homeowner looking to move up the property ladder or an individual at any other stage of homeownership."

Earlier this month Kensington launched a remortgage and large loan product in its Select range.

It also announced it has renewed its £900m warehouse facility, with funding from BNP Paribas and Citibank.

Rival lender Secure Trust Bank meanwhile decided to pull the plug on new lending citing current economic climate, increased competition and pressures on the housing market.

Fleet Mortgages also pulled its range in January while waiting for the next funding line to be made available.